Japan’s Mitsubishi Corporation is the country’s first firm to adopt JP Morgan’s Kinexys Digital Payments to enable instant cross border payments 24/7. The company will take advantage of the programmability of the blockchain-based deposit account to initially move US dollars when needed between its Singapore, London and New York subsidiaries. The key advantage is there is no dependence on bank opening hours.
Kazuyoshi Kawakami, Mitsubishi Corporation’s Treasurer, emphasized that this will improve the company’s liquidity management capabilities, saying that “our liquidity management is a core source of credit strength.” Apart from around the clock movements, he also believes the solution adds resiliency in times of market stress. JP Morgan cited the ability to move cash at short notice, including to meet commodity and other market volatility, a reference to the spikes in oil prices as a result of the Iran war.
JP Morgan has already targeted companies involved in 24/7 markets such as digital assets, with adoption by the likes of Brevan Howard Digital, market maker B2C2, Marex and Ondo Finance.
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