How on-chain payments are evolving
Transcription:
Transcripts are generated using a combination of speech recognition software and human transcribers, and may contain errors. Please check the corresponding audio for the authoritative record.
Joey Pizzolato (00:12):
Tell us a little bit about the work you’re doing with blockchain. How do you see that technology reshaping the payments industry?
Max Neukirchen (00:18):
We’ve been in the blockchain space for literally more than a decade now, and Kinnexus is one of the leading brands for providing blockchain solutions. We are live today with a number of solutions, most notably our tokenized deposits and the J.P. Morgan coin. They allow companies to continue to have deposits backed by the J.P. Morgan fortress balance sheet, but using the blockchain technology to move money twenty four seven, 365. So if you are a CFO, you manage liquidity across 20 legal entities, you can use the solution to move money. And we’ve seen good interest and exponential growth, albeit from a obviously small base. Now, there are still a lot of open questions around this. Interoperability is a big question. How do the various solutions that players are creating ultimately create an ecosystem? Still needs to be clarified. And then there are open questions around AML, KYC, interest payments that still need to be addressed.
(01:28):
How do you treat those assets on the blockchain, those deposits or payments? Because those questions will ultimately determine the growth and we from our side want to make sure that the blockchain solutions are held to the same standard as the fiat rails.
Joey Pizzolato (01:49):
What sort of challenges do these new technologies present payment companies?
Max Neukirchen (01:54):
While there’s many opportunities as we talked about, there are some real, real challenges. I mentioned already fraud, especially in the context of AI. We have seen this year by middle of the year already more fraud attacks on our clients’ money than in all of last year. And that has been a trend over a few years now. And the attacks also get more sophisticated. For example, you have deep fake calls to a CFO or a treasurer asking to wire money. And unfortunately in many cases, the attempt actually happens. So helping protect our clients against those sophisticated attacks is a real priority. Similar on the distributed ledger technology, there’s some real open questions around how they will get applied, especially in cross-border use cases. Where’s the money being held? What’s the regulatory oversight? What is the right framework? If there’s disputes, all of that still needs to be worked through.
Joey Pizzolato (02:59):
Max, thanks so much for being here today.
Max Neukirchen (03:01):
Thank you, Joey. Great to see you.
Joey Pizzolato (03:03):
You too.
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