Marex Becomes Pioneer in Employing Kinexys Digital Payment Services for Settlements
In a groundbreaking move, Marex Group plc, Brevan Howard Digital, and J.P. Morgan's Kinexys Digital Payments platform have joined forces to create a 24/7 programmable blockchain settlement system. This system aims to reduce settlement risk and facilitate more efficient payments, marking a significant step towards modernizing financial market infrastructure.
The collaboration enables near real-time, atomic settlements using blockchain deposit accounts that allow simultaneous asset and fund transfers, thereby minimizing counterparty exposure and operational delays.
Key Aspects of the Collaboration
Real-time Settlement
Kinexys Digital Payments enables instant settlements outside traditional banking hours, reducing delays and risks associated with legacy payment systems.
Atomic Settlements
Transactions are executed simultaneously on both sides (assets and payments), eliminating partial settlement risk and reducing counterparty exposure.
Programmable and Automated Workflows
The blockchain infrastructure supports programmable payments and automation, which streamline transaction processes, cut costs, and reduce manual errors.
Permissioned Environment
Kinexys operates within a permissioned blockchain framework, ensuring compliance, security, and alignment with institutional risk standards.
Brevan Howard Digital's Role
Since joining Kinexys in 2024, Brevan Howard Digital has helped build and expand the ecosystem, supporting workflow enhancements and broader institutional adoption of blockchain settlements. The goal is to increase operational continuity and liquidity management.
Market Impact
Marex’s integration signifies a broader trend toward modernizing financial market infrastructure by replacing legacy settlement rails with blockchain technology. This move is expected to improve efficiency, transparency, and risk mitigation in complex and high-volume transactions.
Adam Gibbons, COO at Brevan Howard Digital, commented that this collaboration is a tangible example of how blockchain technology can drive efficiency gains and strengthen risk management controls.
Terry Hollingsworth, Global Head of Futures & OTC Clearing Sales at Marex, considered the usage of Kinexys Digital Payments as a significant milestone in the advancement of financial market infrastructure, affirming that Kinexys is the next generation of financial market infrastructure.
This partnership leverages blockchain’s automation, transparency, and continuous operation to significantly reduce settlement risk and improve payment efficiency for institutional clients in regulated financial markets.
The Kinexys Digital Payments network, as used by Marex and Brevan Howard Digital, is growing, with Marex becoming the first clearing firm to use Kinexys Digital Payments' blockchain deposit accounts. This collaboration reinforces Marex's position as a market leader in innovation, implementing new technologies to better serve its clients and bring new efficiencies to financial markets.
Akshika Gupta, Global Head of Client Solutions at Kinexys by J.P. Morgan, considers the usage of Kinexys Digital Payments by Marex and Brevan Howard Digital for seamless, 24/7 settlements as a significant milestone in the advancement of financial market infrastructure. She affirms Kinexys by J.P. Morgan's commitment to delivering infrastructure for the betterment of the industry.
In conclusion, this collaboration between Marex, Brevan Howard Digital, and Kinexys by J.P. Morgan is a significant stride towards modernizing financial market infrastructure, offering instant, programmable, and near real-time settlements, while maintaining the same level of security provided by traditional payment settlement rails. The settlement risk, time, and cost reduction achieved through this collaboration are substantial, further solidifying Brevan Howard Digital's position at the forefront of adopting innovative digital solutions.
- The collaboration between Marex, Brevan Howard Digital, and Kinexys Digital Payments, a joint venture by J.P. Morgan, aims to leverage blockchain technology for business and finance, specifically in reducing settlement risk and enhancing efficient payment structures, thereby modernizing financial market infrastructure.
- As a part of this partnership, Marex has become the first clearing firm to utilize Kinexys Digital Payments' blockchain deposit accounts, facilitating near real-time, atomic settlements that minimize counterparty exposure and operational delays, while ensuring the same level of security as traditional payment settlement rails.
