Major MENA banks embrace JP Morgan's distributed ledger technology for payment solutions
Major Middle Eastern Banks Embrace J.P. Morgan's Blockchain-Based Payment Solution
In a significant leap for digital payments in the Middle East and North Africa (MENA) region, eight of the top banks have adopted J.P. Morgan's innovative Kinexys Digital Payments platform.
First Abu Dhabi Bank (FAB), Emirates NBD, Commercial Bank of Dubai, Bahrain's Bank ABC, and Qatar National Bank are among the banks that have integrated Kinexys to enhance their digital payments capabilities. The latest clients are the largest and third largest banks in the MENA region, signalling a growing trend towards blockchain technology in the region.
The National Bank of Kuwait (NBK) is another major bank that has adopted Kinexys, joining FAB as the two top 10 MENA banks to have integrated this cutting-edge technology. These banks are recognised leaders in the MENA region and are leveraging Kinexys to streamline their digital payments processes.
Since its inception, Kinexys Digital Payments has processed around $1.5 trillion in transactions, providing a robust and reliable platform for banks to facilitate cross-border payments. The platform allows money to move across jurisdictions instantly and 24/7, eliminating the friction caused by differing opening hours of banks in the region.
J.P. Morgan, the American multinational investment bank, offered a functional blockchain solution early, positioning itself as a leader in the field. The platform now supports payments in EUR and GBP, in addition to dollars, expanding its reach and versatility.
First Abu Dhabi Bank has also announced plans to launch its own stablecoin, further cementing its commitment to digital payments. The UAE, where FAB is based, is also set to launch a retail and wholesale central bank digital currency (CBDC) later this year, adding another layer of digital payment innovation in the region.
The adoption of Kinexys Digital Payments by these major banks provides an opportunity to rewire how multi-currency clearing and settlement infrastructure operates in the MENA region, as stated by Naveen Mallela, Global Co-head of Kinexys by J.P. Morgan. This development is expected to revolutionise the digital payments landscape in the MENA region, making it more efficient and accessible.
[1] S&P Global Market Intelligence, TABB Group Report on Bank Adoption of Stablecoins, Tokenized Deposits, and DLT Payments, 2021 [2] Ledger Insights Report on Bank Adoption of Stablecoins, Tokenized Deposits, and DLT Payments, 2021 [4] S&P Global Market Intelligence, TABB Group, Top 10 MENA Banks, 2021
- The news of these Middle Eastern banks adopting J.P. Morgan's blockchain-based payment solution could signal a growing trend towards blockchain technology within the industry.
- The adoption of Kinexys Digital Payments by the MENA region's leading banks such as First Abu Dhabi Bank and National Bank of Kuwait has the potential to revolutionize the digital payments landscape, providing insights into the future of finance and technology in the region.
- With the launch of its own stablecoin, First Abu Dhabi Bank joins the growing list of institutions exploring the use of stablecoins and digital assets in the retail and wholesale sectors.
- The implementation of central bank digital currencies (CBDC) in the MENA region, such as the one planned for the UAE later this year, could further advance the blockchain-based payment infrastructure, potentially benefiting various assets and cross-border transactions.
- In the global financial market, reports like those from S&P Global Market Intelligence and Ledger Insights offer valuable insights into the adoption trends of stablecoins, tokenized deposits, and distributed ledger technology (DLT) payments, which are all crucial components in the ever-evolving digital assets and payments industry.
