# Execute Wholesale Payments and Securities Settlement Efficiently

> JPMorgan Chase deploys JPM Coin on its permissioned Onyx blockchain platform as a live production environment for institutional wholesale payments and securities settlement. Corporate clients and banks use this bank-backed deposit token to unlock trapped capital and execute round-the-clock settlements in near real time. The system supports international treasury operations and enables the intraday mobility of repo collateral.

**Sector:** Tertiary sector · **Industry:** Banking and financial services · **Organisation:** JPMorgan Chase · **Maturity level:** Production

Canonical URL: https://www.sapientblock.com/en/use-cases/jpmorgan-chase-wholesale-zahlungen-wertpapierabwicklungen-effizient-abwickeln

## Documentation status

- **Project status:** Production
- **Evidence:** Evidence medium
- **Editorial review:** pending

## Description

JPMorgan Chase demonstrates with JPM Coin on the Onyx platform (now Kinexys) how distributed ledger technology fundamentally modernises institutional payments. Large corporate clients and partner banks use the system to move funds in real time without interruption by weekends or holidays. The technology replaces lengthy clearing processes with programmable value transfers based on tokenised bank deposits.

The platform developed by JPMorgan Chase relies on a closed blockchain network based on Enterprise Ethereum standards and certified for the highest security requirements. Through the JPM Coin, which is backed one-to-one by US dollar deposits at the bank, corporate clients can finalise transactions instantly. The system is used especially for cross-border large payments, foreign exchange settlement, and intraday collateral management in repo transactions. The production launch at the end of 2020 proved that distributed ledger technology is marketable in the regulated banking environment and offers substantial operational efficiency advantages. Further development under the Kinexys brand aims to firmly establish programmable payments and the tokenisation of additional assets in the global financial market.

## Benefits

- Optimised global cash management without cut-off times
- Reduced counterparty risk in securities and foreign exchange transactions
- Settlement of large transactions in real time around the clock
- Significant reduction of tied-up working capital
- Automated execution of contractual payments via smart contracts
- Elimination of time-consuming manual payment investigations
- Direct transparency over the whereabouts of transactions

## Challenges

- Restriction of the network to verified institutional partners and clients
- Requirement of sufficient balances on specialised custody accounts
- High regulatory requirements for digital deposit tokens in various jurisdictions
- Need for integration with heterogeneous internal IT systems of clients
- Requirement for further training regarding blockchain-based financial processes

## Technology foundation

Permissioned distributed ledger technology based on the Quorum architecture within the Onyx network (now Kinexys). This closed architecture ensures regulatory compliance, confidentiality of institutional transaction data, and high throughput rates for interbank business.

## Sources

- [JPM Coin: Bank-Backed USD Deposit Token from Kinexys](https://www.jpmorgan.com/kinexys/jpm-coin)
- [About Kinexys: Our Story, Leadership and More](https://www.jpmorgan.com/kinexys/about)
- [Kinexys: Enterprise Bank-Led Blockchain Solutions](https://www.jpmorgan.com/kinexys/index)
- [JPMorgan creates blockchain unit, says the technology is close to making money](https://www.cnbc.com/2020/10/27/jpmorgan-creates-new-unit-for-blockchain-projects-as-it-says-the-technology-is-close-to-making-money.html)
- [Review of JPMorgan's Onyx Blockchain Platform](https://boostylabs.com/blog/onyx)