Jakarta Futures Exchange (JFX), the leading futures and derivatives exchange group in Indonesia has announced an expanded Memorandum of Understanding (MOU) with Kinesis Money and Allocated Bullion Exchange (ABX). The partnership will seek to develop an Indonesian based and regulated blockchain exchange using Kinesis technology.
Together, Kinesis and ABX have developed an evolutionary monetary system using real assets (gold and silver) as the basis for digital currencies. These currencies are transacted on the Kinesis Blockchain Exchange, a fork of the Stellar Network which is able to handle more than 3000 transactions per second. The system is also integrated with mobile banking and fiat currency exchange services.
ABX, the world’s leading electronic institutional exchange for physical precious metals, has been working with JFX to expand gold investment opportunities in Indonesia. JFX is a leading exchange for gold futures contracts, and is now launching a spot physical Sharia Gold Contract, in partnership with ABX, having been granted approval by Indonesian regulators and the Indonesian National Shariah Board. A blockchain exchange version of gold-based currencies, through collaboration with Kinesis and ABX, is a natural extension of the JFX and Indonesian government vision.
Stephanus Paulus Lumintang, President Director, Jakarta Futures Exchange said: “JFX is committed to providing the best solutions and services in the futures and derivatives industry. It’s increasingly become clear to us that the benefits of distributed ledger technology, or ‘blockchain’ will unlock tremendous amounts of value for Indonesia and Indonesian people. Blockchain regulation in Indonesia is currently in progress, and it is quite an important, yet difficult task. However, JFX is ready to be a blockchain exchange company in Indonesia, in compliance with any legal and regulatory requirements. Our future partnership with Kinesis and ABX will enable us to not only tap into these advantages but to create a secure and transparent blockchain network that provides a credible alternative to existing systems of exchange.”
This partnership is part of JFX’s future intention to create blockchain-based solutions in addition to existing infrastructure, allowing investors alternatives, in which to benefit from increased ease, speed and security of transactions. The future development of this partnership propels institutional acceptance of blockchain technology, through the sharing of concepts, business models and technology solutions.
Thomas Coughlin, CEO Kinesis; CEO ABX, said: “The bespoke blockchain network that we developed creates a complete monetary system which enables real, physical assets to be transacted and exchanged digitally, at speed and at low cost. We believe that the integration of physical precious metals and distributed ledger technology offers tremendous value to the Indonesian market, with its dual interest in gold and in blockchain. We look forward to continuing our partnership with JFX to bring this to fruition.”