Axis Bank, a leading private sector bank in India, has made history by being the first financial institution in the country to offer near-instant, round-the-clock programmable USD clearing services for its business clients. This groundbreaking service is made possible through a strategic partnership with JPMorgan’s Kinexys Digital Payments (KDP), a division of Kinexys, as announced in a recent statement.
Kinexys Digital Payments leverages a scalable network of blockchain deposit accounts to facilitate and automate payments directly between accounts. Since its inception, the Kinexys platform has processed over $1.5 trillion in transaction volume, with daily transactions averaging over $2 billion. The platform has experienced a remarkable 10-fold growth in payment transactions year over year, highlighting its increasing popularity and effectiveness, according to the statement.
By collaborating with KDP, Axis Bank is now able to offer its business clients the flexibility of accessing cross-border payment services round-the-clock. The integration of advanced blockchain technology into the bank’s infrastructure enhances the reliability of payment processing, opening up possibilities for new corporate applications such as programmable cash concentration across multiple banks. This innovation empowers businesses with greater control and efficiency in managing their finances.
“Axis Bank’s leadership team’s commitment to innovation played a pivotal role in the successful launch of the first-of-its-kind blockchain-based payments capability to its consumer and corporate client base in India,” said Naveen Mallela, Global Co-Head of Kinexys at JPMorgan. “Our collaboration with Axis Bank represents a significant step towards establishing a robust industry-wide blockchain-based financial ecosystem with interoperability among various digital currency solutions.”
Introduced in 2019, KDP’s blockchain-based deposit accounts have gained widespread adoption among businesses and financial institutions globally. These accounts enable seamless, on-demand, 24/7 multi-currency payments across borders.
“We are thrilled to partner with Kinexys by J.P. Morgan to introduce a market-first 24/7 programmable USD clearing capability for our institutional and commercial banking clients for their cross-border payments, originating from GIFT City (Gujarat International Finance Tech City),” said Neeraj Gambhir, Group Executive & Head-Treasury, Markets & Wholesale Banking Products at Axis Bank.
“In Transaction Banking at Axis Bank, we have always prioritized innovation and the introduction of cutting-edge payment and digital capabilities to assist our clients in optimizing their Treasury function. This collaboration brings significant value to our clients by streamlining payments, unlocking liquidity, and providing additional options for cross-border payments through blockchain-based payment rails designed for growth,” Gambhir added.
According to a GlobalData report from December 2024, Axis Bank has allocated substantial resources to emerging technologies as part of its digital transformation strategy. The bank’s focus includes artificial intelligence (AI), big data, blockchain, cloud computing, and payment solutions. In 2024, the bank’s annual Information and Communications Technology (ICT) expenditure reached $290 million, with a significant portion dedicated to purchasing software, ICT services, and network and communications solutions from various vendors.
The Economic Survey of India 2024-2025 highlights the rapid technological advancements, particularly in AI, blockchain, and data analytics, which present new opportunities to revolutionize traditional financial services and processes.
AI and large language models (LLMs) have enhanced customer service through interactive chatbots and personalized experiences, while blockchain technology ensures secure, transparent, and efficient transactions. The evolving consumer expectations, driven by digital natives and the increasing demand for personalized, seamless, and convenient financial services, are prompting both established companies and new entrants to innovate to stay competitive.
“In the past 15 months, we have witnessed a significant shift towards consumer-centric AI. Large language models represent a new frontier in AI, offering expanded possibilities. At Axis Bank, we established a competency center dedicated to Gen AI about a year ago,” Avinash Raghavendra, President and Chief Information Officer (CIO) of Axis Bank, shared with Financial Times in March.
“Quantum technology is poised to provide deeper insights into transactions than ever before. We have already developed some exciting proofs of concept in this area,” Raghavendra added.
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