JPMorgan’s blockchain division, Kinexys—formerly known as Onyx—has significantly strengthened its presence in the Middle East and North Africa (MENA) by establishing partnerships with eight major financial institutions in the region. This move marks a pivotal step in the growing adoption of blockchain technology within the traditional banking sector, particularly in areas demanding enhanced efficiency and transparency in cross-border financial transactions.
The banking giant announced that among the eight institutions now working with Kinexys are Qatar National Bank, Saudi National Bank, First Abu Dhabi Bank, Emirates NBD, Commercial Bank of Dubai, and Bank ABC. The names of the remaining two partner banks were not disclosed, as confirmed by a JPMorgan spokesperson. These banks are reportedly leveraging the Kinexys platform to optimize key financial operations, including international payments, treasury management, and overall transactional efficiency.
Responding to Regional Settlement Challenges
According to JPMorgan’s Kinexys team, the collaboration with MENA-based banks aims to address persistent issues faced by financial institutions in the region. These challenges include inefficiencies in commercial settlement processes, especially in the context of cross-border payments and liquidity management. The Kinexys Digital Payments platform is positioned as a solution capable of facilitating near-instant, round-the-clock settlements, eliminating the limitations of legacy banking systems that operate within conventional business hours.
A Kinexys executive emphasized that with eight of the region’s largest banks onboard, the platform now has a unique opportunity to reshape multi-currency clearing and settlement systems in the MENA region and eventually extend these capabilities on a global scale. This evolution aligns with JPMorgan’s broader strategy to modernize financial infrastructure using decentralized technologies.
Kinexys Platform Sees Surge in Activity
Launched in 2019, the Kinexys platform has processed over $1.5 trillion in transactions to date, underscoring its growing relevance in digital finance. The platform currently handles over $2 billion in transaction volume daily, with JPMorgan noting that payment volume has grown tenfold on a year-over-year basis. Despite this surge, Kinexys still represents only a small portion of the nearly $10 trillion that flows through the bank’s traditional payments operations on a daily basis.
The Kinexys suite comprises four major components. These include Kinexys Digital Payments, a blockchain-based system for deposits and payments; Kinexys Digital Assets, which supports asset tokenization; Kinexys Liink, a permissioned network enabling data sharing for payments; and Kinexys Labs, the research and development arm dedicated to blockchain innovations.
On-Chain FX Settlements Gain Momentum
A noteworthy feature of Kinexys Digital Payments is its integration with JPMorgan’s foreign exchange (FX) services, enabling on-chain settlement capabilities. This integration currently supports U.S. dollars, euros, and British pounds, with additional currencies expected in future rollouts. The enhanced system allows for real-time, 24/7 cross-border FX settlement, significantly lowering settlement risk and increasing operational speed for institutional clients.
This latest development reflects JPMorgan’s ongoing commitment to leading innovation in the blockchain finance space. As the MENA region positions itself as a hub for fintech transformation, the integration of Kinexys with its leading banks is likely to influence how digital financial infrastructure evolves globally.
