JPMorgan Rolls Out Programmable Payments for Institutional Blockchain Platform JPM Coin – JPMorgan, the multinational banking firm, has introduced a programmable payment feature for institutional users of its private blockchain platform, JPM Coin. Naveen Mallela, head of JPMorgan’s Onyx blockchain platform, revealed the details on LinkedIn, emphasizing that this capability is now accessible to all institutional clients.
The feature is designed to facilitate real-time,programmable treasury functions and innovative digital business models. Mallela considers this launch a significant milestone for JPM Coin, labeling the newly added programmability as the “holy grail” for their blockchain platform. The Onyx team highlights this feature as a groundbreaking development, positioning it as a “first-of-its-kind” offering from a global commercial bank in the payments industry.
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The solution caters to blockchain-based accounts on the JPM Coin System, allowing users to program payments using an “If-This-Then-That” interface. Siemens AG, the German tech company, stands as the inaugural institutional client to employ the programmable payments feature, demonstrating its utilization as recently as November 6. Additionally, it is anticipated that FedEx and Cargill will leverage this solution by the conclusion of 2023.
As outlined by Onyx, users can employ programmable payments to oversee various automated functions. This encompasses dynamic funding, enabling the definition of rules for dynamically funding a bank account in the event of shortfalls. Another application involves event-based payouts, allowing users to execute payments based on events such as margin calls, delivery of assets, goods and services, or the fulfillment of contractual obligations.
The statement from Mallela highlights the offering as the catalyst to enable dynamic and event-driven functionality powered by blockchain technology: “Programmability has been a key objective for digital currencies and tokenized money since the beginning.” Siemens AG group treasurer Peter Rathgeb added that the introduction of programmability taps into the “advantages and features from the crypto world” in combination with JPMorgan’s blockchain-based bank accounts.
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“This will take Siemens to the next level of automation to not only optimize the use of working capital but also enable data-driven digital business models and support the scalability of our Siemens business from the treasury side.” JPMorgan is reportedly working on a blockchain-driven solution for international transactions. According to a report on September 7, the upcoming deposit token solution is distinct from the JPM Coin platform and is pending regulatory approval in the United States.