JPMorgan has developed instant settlements between dollars and euros on the Kinexys blockchain platform, which will soon be launched. The bank will use JPM Coin for fast transactions and plans to add pounds sterling after receiving regulatory approvals.
Kinexys processes over $2 billion in transactions daily, which is only a fraction of the bank's total volume of $10 trillion a day. Navin Malela from Kinexys noted that the bank aims to reduce costs and improve liquidity, as exchanging dollars for euros takes up to two days.
The transaction volume on Kinexys has increased tenfold over the past year; however, JPMorgan's blockchain operations are not yet profitable, and balancing costs with revenues may take three to five years. In November 2022, the bank conducted its first foreign currency transaction on a public blockchain, exchanging Singapore dollars for Japanese yen via SBI Digital Asset Holdings on the Polygon blockchain.
