Private sector bank Axis has become the first Indian financial institution to provide near-real-time, 24/7 programmable USD clearing for its commercial clients, in collaboration with JP Morgan’s digital assets unit Kinexys.
Kinexys Digital Payments (KDP) is driving this initiative, utilizing blockchain deposit accounts that were launched in 2019. These accounts are increasingly adopted by various organizations worldwide to facilitate continuous multi-currency payment movements across borders.
According to a statement from JP Morgan, the Kinexys platform has processed over $1.5 trillion in transaction volume, with an average daily transaction volume exceeding $2 billion and experiencing a tenfold year-over-year increase in payment transactions.
With KDP, Axis can now allow its commercial clients to execute cross-border payments at any time. The blockchain-based platform ensures efficient processing of payments, enabling businesses to manage cash across multiple banks in an automated manner.
This marks the first instance in which an Indian company can receive dollar payments round-the-clock, with the capability to be launched from Gujarat International Finance Tec-City (GIFT City), an international financial services center.
Neeraj Gambhir, Group Executive and Head of Treasury, Markets, and Wholesale Banking Products at Axis Bank, stated: “This collaboration adds significant value for our clients by streamlining payments, unlocking liquidity, and enhancing options for cross-border transactions through blockchain-based payment rails designed for growth. This capability, among others introduced this year, positions Axis Bank’s international banking unit as the preferred transaction bank for our clients from GIFT City.”
Naveen Mallela, Global Co-Head of Kinexys by JP Morgan, remarked: “The innovative mindset of Axis Bank’s leadership was crucial for launching this first-of-its-kind blockchain-based payment capability for its Indian consumer and corporate clients. Our partnership with Axis Bank represents a significant advancement in developing a blockchain-based financial ecosystem that promotes interoperability among central bank digital currencies, stablecoins, and other digital currency solutions.”