JPMorgan (JPM) has added support for UK pound-induced accounts to its blockchain-based payment network Kinexys, as banks target the gap left by Stablecoin Market’s overwhelming focus on the US dollar.
Released in 2019 under the name JPM Coin, Kinexys allows corporate clients to move funds between JPMorgan accounts and resolve forex transactions at any time.
The addition of pound comes less than a year after the service expanded to process euro transactions. Naveen Malla, the global co-head of the Onyx platform running the network, said 80% of Kinexys’ volume is still on a dollar basis, but demand for pound transfers is on an increasing level, Bloomberg reports.
The move addresses long-standing issues in the $200 billion Stablecoin market, where almost all tokens are tied to the dollar. This has seen a limited option for businesses requiring quick and low-cost payments in other currencies, and major financial institutions, including society, where social general launches fiatback stubcoins.
The first participants in the expanded pound service include Swapagent, a post-trade company under the London Stock Exchange Group, and Trafigura, one of the world’s largest commodity traders.
The Kinexys network currently processes over $2 billion in daily transactions, but this still represents a small slice of daily $10 trillion volume handles across the payments business, the report adds.
