Blockchain Deposit Accounts (BDAs):
Clients can create BDAs, which are essentially digital accounts on the Kinexys blockchain.
Funding BDAs:
These accounts are funded from linked Demand Deposit Accounts (DDAs) held at JPMorgan Chase.
Real-time Payments:
Once funded, clients can initiate payments to other BDA or DDA holders, facilitating real-time cross-border transfers.
Reduced Friction:
Kinexys Digital Payments aims to reduce traditional friction points in cross-border payments, such as cut-off times, banking holidays, and reliance on correspondent banks.
Programmable Payments:
The platform also supports programmable payments, allowing for automated and customized payment rules based on specific criteria or events.
Integration:
JPMorgan has focused on integrating Kinexys with existing infrastructure, making it accessible through various channels like APIs, internet banking, and even SWIFT, to encourage wider adoption.
Faster Settlement:
Payments are processed on a 24/7/365 basis, enabling near real-time settlement, even outside of traditional banking hours.
Reduced Costs:
By streamlining the payment process and potentially reducing reliance on intermediaries, Kinexys can lower transaction costs.
Increased Efficiency:
Automation and programmable payments can optimize treasury functions and improve liquidity management.
- Corpay Cross-Border is using Kinexys to facilitate FX conversions for its clients, enabling them to trade and settle payments outside of traditional market hours.
- LSEG's SwapAgent is piloting Kinexys for post-trade services, aiming to leverage its programmable payment capabilities for settlements.
In essence, JPMorgan Chase is leveraging blockchain technology to modernize cross-border payments, offering a more efficient, cost-effective, and flexible solution for its clients.
