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The bank clarified that the word “kinetic” served as the inspiration for the name “Kinexys.”
JPMorgan is using blockchain technology to broaden its partnership. The US-based bank recently announced that it has changed the name of its blockchain division, which was first introduced as “Onyx,” to “Kinexys” to reflect its operational roadmap for Web3 adoption. With blockchain at its core, the rebranding introduces a number of new financial services and products. This comes after JPMorgan stepped up its investigation into tokenising Real World Assets (RWAs).
The bank elaborated on the rebranding by stating that the word “kinetic,” which means “caused by motion,” is the source of the name “Kinexys.”
“This is representative of the way we move money, assets, and financial information around the world with speed, ease, and efficiency. Together with our clients, we aim to move beyond the limitations of legacy technology and realise the promise of a multichain world,” Umar Farooq, co-head of JPMorgan Payments, said in a statement.
As of November 2024, JPMorgan’s market cap is reportedly ₹58.517 trillion (roughly $ 693.5 billion), making it the world’s 13th most valuable company by market cap.
According to the bank’s statement, incorporating blockchain technology into its systems has allowed for new RWA tokenisation services and created a safe infrastructure that allows customers to move money across borders without interruption, even after regular business hours.
Foreign exchange (FX) capabilities will soon be added to Kinexys Digital Payments (formerly JPM Coin System). A proof-of-concept (POC) from Kinexys Labs and Kinexys Digital Assets has also been announced. This proof of concept showcases on-chain privacy, identity, and composability—three key concepts that will be crucial to our ongoing development,” the statement said.
Siemens, Ant International, and BlackRock are just a few of the well-known institutional clients that JPMorgan’s Onyx initiative has drawn in over the last two years. With an average daily transaction volume of more than $2 billion, Onyx was able to surpass $1.5 trillion (approximately Rs. 1,26,55,856 crore) in notional value, according to company figures.
“We are investigating identity, privacy, and composability in blockchain ecosystems in greater detail. While streamlining identity management is inherently linked to the potential for tokenised assets at scale, improved privacy measures are essential for enhancing access to digital assets, according to JPMorgan.
The New York City-based bank is investigating additional Web3 technologies in addition to blockchain. The bank declared last December that it was eager to test the “immersive training applications” of the metaverse, despite a slowdown in the metaverse industry.
The bank made the prediction in May 2022 that cryptocurrency assets would eventually merge with traditional finance as regulatory oversight of them increases. In order to meet new market demands, the bank also looked into launching a cryptocurrency wallet service that same year.