Key Notes
- QNB plans to process corporate payments in Qatar by integrating Kinexys.
- This marks a departure from the constraints and limitations of traditional banking infrastructures.
- Kinexys processes up to $3 billion in transactions daily, with some liquidity set to spill to crypto.
Qatar National Bank Group (QNB) has recently adopted Kinexys, JPMorgan’s advanced blockchain platform. According to a Bloomberg report, the primary objective is to improve the efficiency of corporate digital payments within the region. This shift signifies a notable advancement, addressing the pain points commonly faced by users of traditional banking systems.
QNB Departs from Limitations of Traditional Banking Infrastructures
In the realm of Traditional Finance (TradFi), cross-border payments often operate under significant restrictions, primarily limited to weekdays—which can lead to delays of several days. This problematic timeframe can hinder business operations, particularly for companies engaged in international trade.
By incorporating JPMorgan’s Kinexys, QNB is proactively moving to rectify this scenario. Blockchain technology is renowned for its ability to facilitate instant transactions, available around the clock and typically accompanied by reduced transaction fees. The Kinexys platform utilizes a permissioned blockchain system, empowering clients to swiftly transfer funds deposited within JPMorgan seamlessly and in real-time.
This innovative blockchain payments platform reportedly processes up to $3 billion in daily transactions. While this figure is impressive, it represents merely a fraction of JPMorgan’s total transactional volume, which exceeds a staggering $10 trillion daily. Kinexys has also integrated with industry disruptors like Chainlink and Ondo Finance, expanding its functionality to include immediate dollar-euro settlements.
Kamel Moris, QNB’s Executive Vice President of transactional banking, has described this development as a “treasurer’s dream.” He emphasized the platform’s 24/7 service capability, indicating that payments can now be guaranteed in as little as two minutes, fundamentally altering the speed and efficiency surrounding corporate transactions.
SWIFT Taps Consensys for Blockchain-Based Cross-Border Payments Trial
In a parallel initiative, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) is exploring its own blockchain-based advancements. In collaboration with Consensys and several undisclosed institutions, SWIFT aims to establish a 24/7 real-time cross-border payment system, mirroring QNB’s endeavors to enhance transactional efficiency.
This new blockchain framework will prioritize compliance while also striving for interoperability with both existing and emerging financial networks. Such progress aligns seamlessly with SWIFT’s mission to unite Traditional Finance (TradFi) with digital assets, promoting compatibility among various digital platforms.
Both QNB and SWIFT’s initiatives underscore a broader commitment to reshape the future of financial transactions, embracing the benefits afforded by blockchain technology to overcome legacy system limitations. The landscape of global finance is on the cusp of transformation, driven by the need for speed, security, and efficiency that modern businesses demand.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real-life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.