Indian Axis Bank Teams Up With JP Morgan For A New Blockchain-Based Payment Solution
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Axis Bank, a private sector bank located in India, is now set to become the country’s first financial institution capable of offering near-real-time programmable USD clearing, which will be available around the clock.
This 24/7 solution will be available for its commercial clients, and it comes thanks to the bank’s partnership with JP Morgan, or rather, with its digital assets unit, Kinexys.
JPMorgan’s Kinexys Digital Payments Platform Is The Key
Known as Kinexys Digital Payments (KDP), the unit will power this development by leveraging its blockchain deposit accounts, which have been operational since 2019. The accounts currently serve a growing number of organizations worldwide, driving 24/7 multi-currency payment movements across borders.
JP Morgan said that the Kinexys platform has processed over $1.5 trillion in transaction volume so far, with an average daily transaction volume of more than $2 billion. Not only that, but it also saw a 10x YoY growth in terms of payment transactions.
These figures seem highly promising for the future of the firm, and with KDP powering it, Axis will be able to offer the option of making international payments at any time of day or night. Given that the platform was built using blockchain technology also ensures that the payments will be processed efficiently, which opens even more business opportunities and possibilities, such as automated cash management across multiple banks.
Furthermore, this also marks the first time that a company headquartered in India will be able ot receive dollar payments at any point.
The Next Step In Building An Industry-Wide, Blockchain-Based Financial Ecosystem
Commenting on the move, Axis Bank’s group executive and head of treasury, markets, and wholesale banking products, Neeraj Gambhir, said that the collaboration will help bring major value to the bank’s clients using streamlining payments. In addition to that, it will help by unlocking liquidity, and adding further optionality on international transfers.
The ability to use blockchain-based rails will make Axis Bank the bank of choice for local businesses.
Naveen Mallela, JP Morgan’s global co-head of Kinexys, also commented on the move, saying that Axis Bank has an innovation-first mindset. This was instrumental in launching the blockchain-based payments capability and making it available to the Indian consumer and corporate client base. Mallela also added that the collaboration with Axis marks the next step in creating a growing, industry-wide blockchain-based financial ecosystem with interoperability among central bank digital currencies.
