- QNB implements Kinexys platform for instant US dollar business payments.
- System processes transactions 24/7 within minutes versus days traditionally.
- Institutional blockchain adoption could boost ETH and BTC market sentiment.
QNB Group has integrated JPMorgan Chase’s Kinexys Digital Payments platform for processing US dollar corporate transactions through its operations in Qatar. The Middle Eastern financial institution can now execute business client payments 24/7, with settlement in minutes.
Traditional banking operates its payments mainly during weekdays and requires several days for its funds to reach recipients, whereas the blockchain-based system removes these delays by allowing continuous transaction processing.
Kamel Moris, executive vice president of transactional banking at QNB, stated that corporate treasurers increasingly demand faster payment execution with reduced friction. “Now we can have a 24/7 service window, we can guarantee payments as fast as in two minutes,” Moris said in an interview.
Platform handles $3 billion in daily volume
JPMorgan launched the Kinexys network in 2019, and it currently processes $3 billion worth of transactions daily. This volume continues growing but remains a fraction of the approximately $10 trillion the bank’s payments division handles each day through traditional systems.
JPMorgan leverages its position as the largest US dollar clearing bank globally to expand the platform’s reach. The bank uses its extensive correspondent banking network to onboard additional financial institutions.
Opening the network to other banks allows JPMorgan to serve companies beyond its direct client base. Naveen Mallela, global co-head of Kinexys, described the approach as “institutional-grade scale” in a recent interview.
Large financial institutions worldwide continue increasing their adoption of distributed ledger technology for streamlining complex back office operations. Despite over a decade of experimentation, few blockchain banking systems have achieved commercial viability or meaningful scale.
Related: AurenixAI Secures MSB License, Strengthening Compliance and Global Ambitions
Crypto market implications from institutional adoption
Major financial institution blockchain integrations strengthen confidence in technology that powers cryptocurrencies like Bitcoin and Ethereum. Each adoption announcement validates the underlying infrastructure supporting digital assets.
Bitcoin typically receives positive sentiment effects from traditional finance blockchain adoption. Tokens like Chainlink could gain from the broader movement toward tokenized financial systems.
The QNB integration adds another reference point for blockchain technology’s viability in enterprise payment systems. As more institutions implement these solutions, the technology’s credibility continues building across both traditional and cryptocurrency markets.
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Source: https://coinedition.com/qnb-adopts-jpmorgan-kinexys-for-instant-usd-corporate-payments-using-blockchain/
