JPM Coin, JPMorgan‘s blockchain platform, now presents institutional users with the ability to execute programmable payments.
JPMorgan, the multinational banking firm, has rolled out a feature enabling programmable payments for institutional users on its private blockchain platform, JPM Coin.
Naveen Mallela, the head of JPMorgan’s Onyx blockchain platform, revealed details about this new functionality on LinkedIn, as reported by Bloomberg. Mallela stated that the programmable payments feature is now accessible to all institutional clients, offering real-time, programmable treasury operations and supporting the creation of novel digital business models.
Describing this release as a significant achievement for JPM Coin, Mallela referred to the introduced programmability as the “holy grail” for their blockchain platform.
The Onyx team, in communication with Cointelegraph, furnished additional insights into the programmable payments feature. They emphasized that this feature, a longstanding goal in the payments industry, is a “first-of-its-kind” offering from a global commercial bank. This solution serves blockchain-based accounts on the JPM Coin System, enabling users to program payments through an “If-This-Then-That” interface.
Siemens AG, a German tech firm, is the first institutional client to employ the programmable payments feature, demonstrating its efficacy as recently as Nov. 6. Other notable clients like FedEx and Cargill are expected to utilize the solution by the end of 2023.
Onyx outlined various applications for programmable payments, including dynamic funding, allowing users to define rules for funding a bank account dynamically in case of shortages. Another application involves event-based payouts, enabling users to execute payments based on events such as margin calls, asset delivery, and fulfillment of contractual obligations.
Mallela’s statement underscores the significance of this offering in driving dynamic and event-triggered functionalities 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, noted that incorporating programmability leverages the “advantages and features from the crypto world” in conjunction with JPMorgan’s blockchain-based bank accounts.
“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 developing a new blockchain-based solution for cross-border transactions. As of a report dated September 7, this upcoming deposit token solution differs from its existing JPM Coin platform and is awaiting regulatory approval in the United States.
