QNB Group, a leading Middle Eastern bank, has adopted JPMorgan's blockchain platform, Kinexys, to enable 24/7 US dollar payments processed within minutes, marking a significant step toward more efficient cross-border transactions.

This move allows clients to guarantee payments as fast as two minutes, a stark contrast to traditional banking systems that often take days, and underscores the bank's commitment to digital transformation.

The adoption of blockchain technology by QNB reflects a broader trend of major financial institutions embracing blockchain solutions to improve profitability and operational efficiency, despite previous challenges in large-scale implementation.

This development signals increased confidence in crypto assets like Bitcoin and Ethereum, as traditional banks integrate blockchain, which could also boost trading activity in cryptocurrency pairs such as ETH/USD and BTC/USD.

The move towards blockchain-based payments is part of a larger effort to bridge traditional finance with digital markets, potentially leading to higher participation and more efficient financial operations.

Similar initiatives include SWIFT's collaboration with Consensys and other institutions to develop a blockchain-based, 24/7 real-time cross-border payment system, emphasizing interoperability and compliance.

QNB's blockchain platform operates on a permissioned system, enhancing security and access control for participating clients, and supporting instant, automated transactions.

JPMorgan CEO Jamie Dimon has downplayed stablecoins as a threat to the bank's core business, emphasizing the importance of regulatory oversight in the evolving digital asset landscape.

JPMorgan's Onyx Coin System, a permissioned blockchain, facilitates wholesale USD transfers without involving public cryptocurrencies, supporting institutional blockchain adoption.

Since its launch in 2019, JPMorgan's Kinexys network processes about $3 billion daily in transactions, a fraction of the bank's total daily payments of roughly $10 trillion, with plans to scale further.

The integration of blockchain by QNB and JPMorgan is part of regional efforts, especially in the Gulf, to modernize financial systems, attract international investors, and develop a digital economy.

QNB's use of Kinexys allows clients to open blockchain accounts that mirror traditional deposits, enabling near-instant transactions verified on a distributed ledger, and settling within minutes.