JPMorgan (JPM) has introduced the capability for British pound accounts within its blockchain-based payments network, Kinexys, aiming to fill a significant void left by the stablecoin market’s predominant reliance on the U.S. dollar.
Initially named JPM Coin and launched in 2019, Kinexys enables corporate clients to transfer funds between JPMorgan accounts and execute foreign exchange trades around the clock.
The addition of pound support arrives less than a year after the platform began processing euro transactions. Naveen Mallela, the global co-head of the Onyx platform overseeing the network, mentioned that while 80% of Kinexys’s transaction volume is still dollar-denominated, there is a rising interest in pound transfers.
This step responds to a persistent challenge in the $230 billion stablecoin market, where nearly all currencies are pegged to the dollar, limiting options for companies seeking prompt and affordable payments in different currencies. This has prompted major financial entities like Société Générale to introduce fiat-backed stablecoins.
Among the early users of the expanded pound service are SwapAgent, a post-trade firm affiliated with the London Stock Exchange Group, and Trafigura, one of the largest commodity traders globally.
Currently, the Kinexys network processes daily transactions exceeding $2 billion, although this remains a small fraction of the $10 trillion in daily volume handled by JPMorgan across its entire payments operations.