The financial world is undergoing a seismic shift—one driven by digital transformation, blockchain innovation, and the urgent need for faster, more efficient cross-border payments. At Money20/20 Europe 2025, Naveen Mallela, Global Co-Head of Kinexys at J.P. Morgan, took the stage to articulate a bold vision: digital assets are redefining how money moves across borders, markets, and institutions.
Backed by one of the most influential banks in the world, Mallela’s insights offer a rare glimpse into how legacy financial giants are not only adapting to change but actively shaping it. From programmable ledgers to tokenized deposits, the future of finance isn’t just digital—it’s unified, instant, and built on trustless infrastructure.
The Case for a New Financial Infrastructure
Today’s global payment systems are fragmented, slow, and costly. International transfers often take days, involve multiple intermediaries, and lack transparency. Compliance is manual, reconciliation is complex, and settlement finality remains uncertain until the last leg clears.
Mallela argues that these inefficiencies stem from an outdated architecture: siloed internal ledgers communicating via SWIFT messages. This patchwork system was never designed for real-time, 24/7 global commerce.
👉 Discover how next-gen financial rails are transforming global payments.
Enter Kinexys—J.P. Morgan’s blockchain-powered business unit built to unify money, data, and assets on a single, shared ledger. The goal? To bring the speed and reliability of domestic payments to the international stage.
“Bringing all of this onto a single shared ledger will unlock net-new capabilities—atomic debit-credits, instant settlement, and, when you overlay assets, unprecedented functionality for markets,” says Mallela.
This isn’t theoretical. Kinexys is already operational, enabling institutions to settle transactions in real time with full auditability and reduced counterparty risk.
Who’s Leading the Digital Money Revolution?
Innovation rarely starts at the top. But in this case, it’s both startups and established players driving adoption.
According to Mallela, fintechs are among the most eager adopters of digital money solutions. Why? Because their entire business model depends on fast, seamless money movement.
“Some of the most eager adopters are fintechs—companies that need high-speed, 24/7 money movement. These are the players driving adoption because their business is money.”
But they’re not alone. Banks, asset managers, and payment providers are also investing heavily in digital rails. In particular, regions like Asia are moving quickly due to their complex multi-currency environments and fragmented regulatory landscapes—conditions that make traditional systems especially cumbersome.
Countries such as Singapore, Japan, and South Korea have launched pilot programs for CBDCs (Central Bank Digital Currencies) and cross-border tokenized asset settlements. These efforts are accelerating collaboration between public and private sectors, creating fertile ground for scalable digital money ecosystems.
Stablecoins, CBDCs, and Tokenised Deposits: Coexistence Over Competition
One common misconception is that new forms of digital money must compete with one another. Mallela rejects this notion outright.
“If you look at money today, we already have different forms—central bank money, commercial bank money, and e-money—all working together.”
The same will be true in the future. Stablecoins, CBDCs, and tokenised deposits will coexist, each serving distinct use cases:
- CBDCs may become the backbone of sovereign digital currency systems, especially for government disbursements and interbank settlements.
- Stablecoins could dominate retail payments and remittances where speed and low cost matter most.
- Tokenised deposits, like those pioneered by Kinexys (formerly JPM Coin), offer a regulated, bank-backed alternative ideal for institutional transactions.
This layered approach mirrors today’s financial ecosystem—diverse yet interoperable. The key lies in building standards and infrastructure that allow these forms to interact seamlessly.
Core Innovations Driving Change
Kinexys isn’t just theorizing about the future—it’s building it. The platform comprises four core pillars:
- Kinexys Digital Assets: A tokenization engine for securities, funds, and alternative assets.
- Kinexys Digital Payments: A deposit ledger and payment rail enabling real-time settlement using tokenised deposits.
- Kinexys Kiink: The world’s first bank-led peer-to-peer data sharing network, enhancing privacy and control over financial information.
- Kinexys Labs: A research division pushing the boundaries of blockchain scalability, privacy, and interoperability.
Together, these components form a holistic infrastructure for the digital economy—one where payments, data, and assets move in concert.
Why Atomic Settlement Matters
One of the most powerful features enabled by a shared ledger is atomic settlement—where both legs of a transaction (e.g., payment vs. delivery) execute simultaneously or not at all. This eliminates settlement risk, reduces liquidity strain, and opens doors to automated financial workflows.
Imagine a foreign exchange trade settling instantly between two banks on different continents—no delays, no intermediaries, no exposure to market shifts during clearance.
This level of efficiency isn’t just convenient; it’s transformative for global trade and capital markets.
👉 See how atomic settlement is revolutionizing cross-border finance.
Why Every Institution Needs a Digital Money Strategy Now
Waiting is no longer an option. As Mallela emphasizes, every financial institution should have a digital money roadmap in place—today.
Regulatory momentum is building. The BIS (Bank for International Settlements), IMF, and G20 are all advocating for modernized payment infrastructures. Pilot projects like mBridge (connecting China, UAE, Thailand, and Hong Kong) demonstrate that cross-border CBDC interoperability is not only possible but imminent.
Organizations without a strategy risk falling behind in efficiency, compliance readiness, and customer expectations.
Frequently Asked Questions (FAQ)
Q: What is Kinexys by J.P. Morgan?
A: Kinexys is J.P. Morgan’s blockchain business unit focused on building next-generation financial infrastructure using distributed ledger technology. It enables real-time settlement, asset tokenization, secure data sharing, and programmable payments.
Q: How do tokenised deposits differ from stablecoins?
A: Tokenised deposits represent claims on actual bank deposits (like traditional account balances), backed by regulated financial institutions. Stablecoins may be backed by reserves but aren’t always tied directly to bank liabilities. Tokenised deposits offer higher regulatory clarity for institutional use.
Q: Can digital money replace SWIFT?
A: Not entirely—but it can replace SWIFT for certain use cases. While SWIFT remains vital for messaging, digital money platforms enable direct value transfer on shared ledgers, reducing reliance on intermediaries and enabling instant settlement.
Q: Are CBDCs necessary if we have stablecoins?
A: CBDCs provide a public option for digital currency with central bank backing, ensuring monetary sovereignty and financial inclusion. They complement private-sector innovations like stablecoins rather than replacing them.
Q: Is blockchain essential for digital money?
A: While not the only option, blockchain provides critical advantages—transparency, immutability, decentralization of trust, and programmability—making it ideal for secure, scalable digital money systems.
Final Thoughts: The Future Is Programmable
Naveen Mallela’s message at Money20/20 Europe 2025 is clear: the evolution of money is no longer speculative. It’s happening now—and it’s being built on programmable ledgers, tokenised assets, and unified networks.
For institutions willing to adapt, the rewards are immense: lower costs, faster settlements, enhanced compliance, and new revenue opportunities through automation and innovation.
The transition won’t happen overnight. But with leaders like J.P. Morgan investing in real-world solutions through Kinexys, the path forward is becoming clearer.
👉 Explore how your organization can prepare for the era of digital money.
As borders blur and digital economies expand, one thing is certain—the future of finance is not just digital. It’s connected, intelligent, and already in motion.
Core Keywords: digital money, tokenised deposits, cross-border payments, blockchain finance, programmable ledger, CBDCs, stablecoins, Kinexys