Axis Bank, a premier Indian private sector bank, is set to pioneer near-instant, 24/7 programmable USD clearing services for its corporate clients, becoming the first bank in India to do so. This breakthrough is made possible through a partnership with JPMorgan’s Kinexys Digital Payments (KDP), a division of the financial services giant.
KDP, supported by a scalable network of blockchain deposit accounts, provides an automated system for payments directly between accounts. Since its inception, the Kinexys platform has processed over $1.5 trillion in transaction volume, averaging daily transactions of over $2 billion. This represents a ten-fold increase in payment transactions year-on-year.
This alliance with KDP empowers Axis Bank to offer its corporate clients unrestricted access to 24/7 cross-border payment services. Integrating advanced blockchain technology into the bank’s infrastructure is expected to enhance the reliability of payment processing. This innovation heralds a new era of corporate applications, including programmable cash concentration across multiple banks, affording businesses more control and efficiency in financial management.
Naveen Mallela, Global Co-Head of Kinexys by JPMorgan, lauded the innovation-first mindset of Axis Bank’s leadership team in launching this pioneering blockchain-based payments capability for its corporate and individual clients in India. He noted that this collaboration represents a significant step towards creating an industry-wide blockchain-based financial ecosystem with interoperability among central bank digital currencies, stablecoins, and other digital currencies.
KDP first introduced blockchain-based deposit accounts in 2019, which are now adopted globally by several businesses and financial institutions. These accounts facilitate seamless, on-demand, 24/7 multi-currency payments across borders.
Neeraj Gambhir, Axis Bank’s Group Executive & Head-Treasury, Markets & Wholesale Banking Products, expressed excitement about the collaboration with Kinexys by J.P. Morgan. He spoke about the bank’s commitment to innovation and providing forward-looking payment and digital capabilities to help clients optimally manage their Treasury function. With this partnership, the bank aims to streamline payments, unlock liquidity, and offer more options for cross-border payments using blockchain-based payment rails.
Axis Bank’s commitment to embracing emerging technologies as part of its digital transformation strategy is evident in a December 2024 GlobalData report. The bank’s annual Information and Communications Technology (ICT) expenditure hit $290 million in 2024, with a significant portion dedicated to purchasing software, ICT services, and network and communications solutions.
India’s Economic Survey 2024-2025 highlights rapid advances in technology, such as AI, blockchain, and data analytics, offering opportunities to revolutionize traditional financial services and processes. As consumer expectations evolve, driven by digital natives and a demand for personalized, seamless, and convenient financial services, both established and new companies are being challenged to innovate to stay competitive.
Avinash Raghavendra, President and CIO of Axis Bank, spoke about the bank’s focus on AI and the establishment of a competency centre dedicated to Gen AI in a recent interview with Financial Times. He also mentioned the potential introduction of quantum computing, which could provide more nuanced insights into transactions.
