JPMorgan plans to double daily transaction values on its blockchain to $10 billion — and hopes a new deal with Mitsubishi will help it achieve its goal.
Since its 2020 launch, Kinexys, JPMorgan’s digital asset service, has processed over $3 trillion worth of transactions. But Zack Chestnut tells DL News that this number is only set to grow.
“Our goal is to meaningfully grow these figures as quickly as we can,” the global head of business development for Kinexys said. “We would be pleased but not satisfied to see daily transaction value get above $10 billion per day in the foreseeable future.”
Mitsubishi is only the latest firm to sign up to JPMorgan’s blockchain network. Kinexys serves “hundreds” of clients across five continents, including central and commercial banks to the tune of $5 billion in transactions per day, Chestnut said.
The expansion of Kinexys also highlights Wall Street’s growing adoption of crypto and blockchain technology.
Traditional financial services are launching crypto-trading services, signing partnerships with industry-native firms, tokenising assets, acquiring crypto startups, and increasingly using digital ledger technology to boost efficiencies.
And JPMorgan, led by CEO and ardent crypto-sceptic Jamie Dimon, has found itself at the centre of this wave.
What is Kinexys?
Originally known as Onyx, JPMorgan’s bespoke blockchain first saw the light in 2020. The JPMD deposit token is at the centre of the firm’s payments strategy.
Like a stablecoin, these deposit tokens enable near-instantaneous payments and settlements at a fraction of the price. But instead of being backed by assets like US treasuries, deposit tokens represent funds held in a bank account.
And unlike stablecoins, they can be moved between bank accounts, on- and offchain, without needing to use intermediaries.
“In our experience, many of the efficiencies on offer from using blockchain rails are most valuable in complex, cross-border money movement flows for sophisticated global institutions,” Chestnut said. “As such, the appeal of Kinexys is global”
Mitsubishi is the first Japanese corporation to adopt Kinexys.
“As we are developing and operating businesses globally across a wide array of industries, it is essential that funds raised in the market and cash generated across our operations can be allocated efficiently throughout our consolidated group,” Kazuyoshi Kawakami, Mitsubishi’s treasurer, said in a statement.
Wall Street’s crypto push
JPMorgan is not the only traditional financial behemoth to tap into blockchain technology.
Many such projects have been in the works for years. For instance, payments giant PayPal launched a stablecoin in 2023, and companies like Mastercard have been developing solutions for the better part of the last decade.
Yet Donald Trump’s second term as president has turbo-charged those ambitions. His election win in 2024 and his pro-crypto policies have emboldened old-school banks and payments firms to turbo-charge their digital asset ambitions.
Stripe, the $159 billion payments giant, has launched its own blockchain, Mastercard has created a crypto partnership programme with over 100 companies across fintech and crypto, and crypto-native firms are being acquired like never before.
JPMorgan declined to directly comment on specific governments or other companies’ strategies.
Even so, Chestnut seemed confident that JPMorgan will be able to add new clients to its blockchain-based payments network.
“The pipeline is very robust, and we expect the market will continue to hear more about our continued client growth throughout the next 12 months,” Chestnut said.
Eric Johansson is DL News’ managing editor. Got a tip? Email him at eric@dlnews.com.
