JPMorgan Introduces Programmable Payments on its Institutional Blockchain Platform with JPM Coin
Mitchell Nixon
JPM Coin, the blockchain platform by JPMorgan, now offers institutional users the capability of programmable payments.
JPMorgan, the multinational banking firm, has introduced a programmable payment feature for institutional users on its private blockchain platform, JPM Coin.
Naveen Mallela, head of JPMorgan’s Onyx blockchain platform, shared details of this new functionality on LinkedIn, as reported by Bloomberg. Mallela mentioned that the programmable payments feature is now accessible to all institutional clients, offering real-time, programmable treasury functionality and facilitating the development of new digital business models.
Describing this launch as a significant milestone for JPM Coin, Mallela referred to the introduced programmability as the “holy grail” for their blockchain platform.
The Onyx team, in correspondence with Cointelegraph, provided additional details about the programmable payments feature. They emphasised that this feature, which has been a long-standing goal in the payments industry, is a “first-of-its-kind” offered by a global commercial bank. The solution caters to blockchain-based accounts on the JPM Coin System, allowing users to program payments through an “If-This-Then-That” interface.
Siemens AG, a German tech firm, is the inaugural institutional client to utilise the programmable payments feature, demonstrating its effectiveness as recently as Nov. 6. Other notable clients, including FedEx and Cargill, are anticipated to leverage the solution before the close of 2023.
Onyx highlighted various use cases for programmable payments, such as dynamic funding, enabling users to specify rules for dynamically funding a bank account in case of shortfalls. Event-based payouts represent another application, allowing users to execute payments based on events like margin calls, asset delivery, and fulfilment of contractual obligations.
Mallela’s statement underscores the role of this offering as the driving force behind dynamic and event-triggered functionality facilitated by blockchain technology:
“Programmability has been a key objective for digital currencies and tokenized money since the beginning.”
Peter Rathgeb, group treasurer of Siemens AG, expressed that the incorporation of programmability leverages the “advantages and features from the crypto world,” coupled with JPMorgan’s blockchain-based bank accounts.
“This will take Siemens to the next level of automation to not only optimise 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 fresh blockchain-based solution designed for cross-border transactions. According to a report dated September 7, this upcoming deposit token solution is distinct from its existing JPM Coin platform and is awaiting regulatory approval in the United States.