FirstRand Bank first to advance blockchain treasury management in South Africa with Kinexys by J.P. Morgan
FirstRand Bank has set a new benchmark in South Africa for treasury management, becoming the first in the country to leverage Kinexys by J.P. Morgan’s private, permissioned blockchain network, Kinexys Digital Payments, for programmable, 24/7, near real-time payment transactions across its treasury group.
The FirstRand Bank treasury team set pre-defined conditions through Programmable Payments, that, when met, enabled an automated U.S. dollar transaction between the bank’s treasury group USD-denominated Blockchain Deposit Accounts on Kinexys Digital Payments. This enables FirstRand Bank’s treasury team to make payments across its legal entities outside traditional settlement windows, allowing the bank to optimize liquidity by making near-instant payments based on pre-set conditions.
Bhulesh Singh, FirstRand Group Treasurer, commented, “The group believes that distributed ledger technology is central to the financial market infrastructure of the future. Joining Kinexys will help the bank to improve the speed and efficiency with which it can effect US dollar payments. This has already been implemented for intragroup payments and, by working with a credible partner like J.P. Morgan, FirstRand can develop improved US dollar payments solutions for the group’s customers across broader Africa.”
Zack Chestnut, Head of Business Development for Kinexys Digital Payments at Kinexys by J.P. Morgan, said, “We’re proud to help financial institutions like FirstRand Bank unlock the combined benefits of programmable payments and 24/7/365 onchain payments. Our driving focus is on building
next-generation financial infrastructure and we are excited to work with our clients to realize the future of finance.”
Kinexys by J.P. Morgan, the firm’s industry-leading blockchain business unit, is part of J.P. Morgan Payments, which has a long-standing, strategic presence within the Middle East and Africa (MEA). The firm is committed to deepening its relationships with local financial institutions across Sub-Saharan Africa to help clients modernize their treasury payments operations. And as a direct clearer in local payment schemes in South Africa, J.P. Morgan Payments offers a wide range of treasury services solutions to support clients operating in the country including liquidity management, cross-currency solutions and virtual accounts to help clients streamline operations and manage liquidity positions.
May Wafa, Head of Sub-Saharan Africa Financial Institutions Group (FIG) Sales for J.P. Morgan Payments, commented, “We’re proud to continue working closely with FirstRand Bank and financial institutions across Sub-Saharan Africa to support the modernization of their treasury and payments operations and accelerate digital adoption. We’re committed to helping clients leverage future-centric capabilities and Sub-Saharan Africa remains central to J.P. Morgan Payments’ growth agenda.”