Key Notes
- BMW has adopted JPMorgan’s Kinexys blockchain to automate global fund transfers.
- The new system moves money in seconds, cutting out manual steps and delays.
- Recently, JPMorgan announced plans to accept crypto as loan collateral.
BMW AG has adopted a new system from JPMorgan that uses blockchain to handle some of its foreign exchange transfers. The firm now uses the Kinexys network to transfer funds between its accounts when balances fall below a set level.
This setup replaces slower, manual steps with automatic transfers that go through at any hour. The German automaker aims to reduce the need for extra cash in reserve and keep its global operations steady without delays.
As per a Bloomberg report, JPMorgan said that the system allows funds to move in seconds. In older setups, the same steps often wait for regular bank hours and could stretch across days.
“They’re looking to automate some of the work of their corporate treasuries and explore how artificial intelligence can help manage cash and liquidity across their global operations,” read the Bloomberg report.
Kinexys Expands Its Role Across Finance
Kinexys began in 2019 and now supports billions of dollars in transfers each day. While this level still sits far below traditional payment channels, the blockchain platform has been used by major companies.
J.P. Morgan Private Bank, J.P. Morgan Asset Management and Citco announced the first transaction on a new solution by Kinexys back in October. BMW’s decision adds weight to the growing use of JPMorgan’s blockchain.
In a press release, JPMorgan described how its Kinexys Fund Flow solution collects and stores investor and fund data on a private network. This setup gives clear insight into fund activity and supports faster movement of money.
Smart contracts and simple automated rules help transfer funds without the usual wires and manual checks.
Tokenization Creates New Paths for Investors
JPMorgan aims to offer easier access to alternative assets through tokenization. The firm has already placed a private‑equity fund on its blockchain platform for clients of its private bank.
Tokenization means ownership records for assets appear on a shared ledger. This gives all sides a single view of who holds what and which payments are complete.
The bank expects this approach to lower surprises linked to capital calls and help investors follow their commitments.
The bank also intends to let institutions use Bitcoin
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as collateral for loans by late 2025.
A third‑party custodian would protect the assets. Earlier reports show that JPMorgan also aims to let clients use crypto ETFs as collateral.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
