tl;dr
Financial services firm Marex is the first clearing firm to adopt JPMorgan's Kinexys blockchain platform for client settlements, partnering with hedge fund Brevan Howard Digital to enable 24/7 payment processing. Kinexys offers instant payment settlements on a permissioned ledger, reducing risk, tim...
Financial services firm Marex has become the first clearing firm to adopt JPMorgan's Kinexys blockchain platform for client settlements, collaborating with hedge fund Brevan Howard Digital to enable round-the-clock payment processing. This partnership allows Marex to leverage Kinexys Digital Payments' blockchain deposit accounts, streamlining client interactions and enhancing efficiency.
Kinexys facilitates instant payment settlements, significantly reducing settlement risk, time, and cost while maintaining the security standards of traditional payment systems. Peter Chung, head of research at Presto Labs, views this integration as an early experiment by traditional financial firms to modernize outdated settlement systems through blockchain, emphasizing that initial benefits may be minimal but long-term expertise gains will distinguish successful players.
Originally launched as JPM Coin in 2019 and later rebranded to Onyx, the platform was renamed Kinexys in 2024 to reflect JPMorgan’s expanded focus on programmable blockchain financial infrastructure. Kinexys operates on a permissioned ledger, restricting validation and data access to approved participants, thereby enabling near real-time programmable settlements within a secure, closed-loop ecosystem.
Nitin Gaur, a prominent figure in blockchain and digital assets, highlights that while Kinexys' closed nature limits interoperability with external systems, it marks a vital advance toward programmable and conditional payments, addressing key challenges in liquidity and operational efficiency for financial firms like Brevan Howard and others involved.
This development aligns with JPMorgan's broader digital asset strategy, which has seen rapid progress, including its first public blockchain transaction with tokenized U.S. Treasuries and Chainlink's interoperability protocol. Additionally, JPMorgan's Chase bank plans to allow cardholders to purchase cryptocurrencies on Coinbase and redeem rewards in USDC, signaling a growing acceptance of digital assets. CEO Jamie Dimon remains cautiously optimistic, recognizing stablecoins’ unique advantages while maintaining skepticism about Bitcoin’s viability.