QNB Group, the largest Middle East banking institution, has transferred its corporate payments (in US dollars) to JPMorgan’s blockchain environment.
The shift allows quicker cross-border payments, which enables business clients in Qatar to be paid within minutes, including on weekends. The adoption is an indication of the increased interest of global banks in utilizing blockchain to simplify payment systems.
QNB transitions to Kinexys Digital Payments
Qatar National Bank also assured that it has incorporated the Kinetexys Digital Payments network of JPMorgan to receive corporate dollar remittances. The system is a 24-hour system that completes transactions without delays that are apparent in traditional banking. Payments that used to take days to settle are now settled within a maximum of two minutes. Kamel Moris, QNB head of transactional banking, said that firms demanded money to flow as fast as information. The new service provides more efficiency and reliability to treasurers’ global transactions.
JPMorgan expands blockchain payment network
The Kinexys platform was launched by JPMorgan in 2019. It currently handles approximately 3 billion daily payments, compared with the total amount of payment flow of the bank, which is 10 trillion. Although this constitutes a tiny portion, the system is increasing as the bank increases access by opening the correspondent banking network. With this approach, the institutions that are not directly related to JPMorgan can avail themselves of the service. Naveen Mallela, the head of Kinexys, claims that the platform is built on an institutional grade of scalability and is globally ready.
Global banks pursue blockchain solutions
Blockchain is being tested by major banks across the world as a way of modernizing payment systems and enhancing the complexity of the back office. Although these experiments have been ongoing for over a decade, not many institutions have recorded large-scale results and profitability. Swift network (linking 11,000 plus banks) is in blockchain trials with BNP Paribas, BNY Mellon, and other international participants. Pilot results are supposed to be made in the next few months. One of the bankers working on the project called it a significant technological change in the international payments sector.
The fact that QNB has decided to become a member of the blockchain ecosystem developed by JPMorgan highlights the rivalry between a private platform and an industry-wide system, such as SWIFT. Depending on the outcomes of the planned projects, these projects might lead to the future design of cross-border payments.
