CMC Markets has begun using blockchain technology for cash transfers and instant settlement of payments through a partnership with Kinexys Digital Payments, part of JPMorgan’s Blockchain business unit. The system is live after successful testing and allows for near real-time payments through a network of blockchain deposit accounts.
The move follows JPMorgan’s launch last year of JPMCoin, a blockchain-based deposit token for institutional investors. The token enables transactions to be settled in seconds, 24/7, instead of during traditional banking hours, and is issued on a public blockchain basis via the Kinexys infrastructure.
Lord Peter Cruddas, founder and CEO of CMC Markets, said the partnership provides the company with “improved capital efficiency and operational flexibility”.
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The solution enables financial institutions to instantly move funds across currencies and geographies, reducing payment risk, operational friction, and cost while maintaining the same level of security as traditional payment rails. This initiative supports CMC’s strategy to strengthen its global technology infrastructure and improve capital efficiency across its international operations.
Zach Chestnut, global head of business development for Kinexys Digital Payments, said the team works with clients to “unlock the 24/7 power of on-chain payments and programmable payments.”
JP Morgan bridges private networks with public blockchain
The development of CMC Markets follows Kinexys’ extensive work at JPMorgan. Last May, the bank completed its first blockchain transaction connecting its private and public networks. The transaction involved tokenized U.S. government bonds, with funds being moved on Kinexys to settle government bonds listed on a public blockchain operated by Ondo Finance.
Chainlink was used to link private and public systems. Until now, JPMorgan’s blockchain efforts have been limited to its internal network, with early trials, including a 2024 pilot with Siemens, remaining in the experimental stage. Tokenized Treasury is a blockchain-based version of a money market fund that provides exposure to government debt.
