Siemens AG and digital asset market maker B2C2 are the latest major companies to adopt JPMorgan Chase’s blockchain-based payments network, using it to execute real-time foreign exchange (FX) transactions 24 hours a day.
Key takeaways:
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Siemens and B2C2 are using JPMorgan’s Kinexys blockchain to execute cross-border currency transactions in real-time, 24/7.
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B2C2 says the system provides critical liquidity flexibility during crypto market volatility.
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Kinexys’ adoption reflects a broader corporate shift toward blockchain payments.
The platform, known as Kinexys Digital Payments, allows Siemens and B2C2 to settle cross-border transactions in US dollars, British pounds and euros with near-instant finality, according to a Bloomberg report.
Traditional currency payment systems typically operate only on weekdays and can take several days to process, a friction Kinexys aims to eliminate.
For B2C2, a subsidiary of Japan’s SBI Holdings, the integration offers a major advantage in managing liquidity during cryptocurrency market volatility.
“This gives us the ability to move cash 24/7 seamlessly,” said Thomas Restout, CEO of B2C2. “For risk management, it is a key piece.”
Restout added that being tied to traditional banking barriers can prove restrictive when crypto markets move sharply on weekends, as traders are often unable to deploy capital when banks are closed.
This shift highlights a growing trend among large corporations adopting blockchain-based payments infrastructure to streamline the global movement of money.
Distributed ledger systems promise faster settlements, lower administrative costs and better visibility into cash, long-standing inefficiencies in cross-border payments.
While financial institutions have experimented with blockchain networks for years, few have so far reached consistent commercial scale.
Launched in 2019, JPMorgan’s Kinexys network currently processes about $3 billion in daily transactions, a modest proportion compared to the roughly $10 trillion handled each day by the bank’s broader payments division.
However, adoption is expanding as major companies look to modernize cash and liquidity management.
Siemens, which used Kinexys to complete a near-instant dollar-to-euro transfer, has been an early adopter of the bank’s blockchain.
Four years ago, it became the first customer to move funds between global subsidiaries using JPMorgan’s blockchain deposit accounts.
“The latest enhancement takes us a step further, simplifying FX transactions in real time, overcoming time zone barriers and mobilizing cash precisely when and where it is needed,” said Heiko Nix, global head of cash management and payments at Siemens.