The Qatar National Bank Group (QNB), one of the largest banks in the Middle East, has made a significant move towards embracing blockchain technology by adopting JPMorgan’s Kinexys blockchain platform to process corporate payments in Qatar. This development marks a notable departure from traditional banking infrastructure, which often restricts cross-border payments to weekdays and can take several days to complete.
According to Kamel Moris, Executive Vice President of Transactional Banking at QNB, the integration of Kinexys is a “treasure for treasurers,” enabling guaranteed payments in as little as two minutes. This increased efficiency and speed are expected to revolutionize the way corporate payments are handled in Qatar. Despite efforts to obtain further information from QNB, no response was received at the time of publication.
Streamlining Corporate Payments with Blockchain Technology
Kinexys, the blockchain platform developed by JPMorgan, processes an impressive $3 billion in daily transactions. Although this figure is a fraction of JPMorgan’s overall daily payment processing, which amounts to around $10 trillion, it highlights the potential of blockchain technology in streamlining financial transactions. The platform utilizes a permissioned blockchain system, allowing participating customers to move funds within JPMorgan in real-time.
The permissioned blockchain integrates an access control layer, providing an additional layer of security. This enables network participants to perform actions that are authorized, ensuring the integrity and security of transactions. In a recent test, Kinexys collaborated with Chainlink and Ondo Finance to complete a cross-chain delivery against payment (DVP) between a public test network and a permissioned payment network.
Industry Developments and Regulatory Outlook
JPMorgan CEO Jamie Dimon expressed a lack of concern regarding stable coins, stating that he is “not particularly worried” about these tokens posing a threat to the bank’s business model. However, Dimon acknowledged the importance of monitoring developments in the sector and understanding regulatory changes. Data from RWA.XYZ showed a significant increase in stable coin net inflows, with over 320% growth in the third quarter, led by Tether’s USDT and Circle’s USDC.
As the financial industry continues to evolve, the adoption of blockchain technology and the growth of stable coins are expected to play a significant role in shaping the future of corporate payments. With its move to adopt Kinexys, QNB is poised to benefit from the increased efficiency and security offered by blockchain technology. For more information on this development, visit https://cointelegraph.com/news/qnb-adopts-jpmorgan-kinexys-blockchain-for-corporate-payments?utm_source=rss_feed&utm_medium=rss_tag_blockchain&utm_campaign=rss_partner_inbound.
