JPMorgan Unveils Programmable Payments Feature on its Private Blockchain Platform, JPM Coin
Summary:
JPMorgan has introduced a programmable payment feature for institutional clients who use its private blockchain network, JPM Coin. The feature, according to the head of the Onyx blockchain platform, Naveen Mallela, enables real-time treasury operations and facilitates new digital business frameworks. Siemens AG has become the first institutional client to utilize this feature as of November 6th. The programmable payment capability is expected to effectively manage multiple automated functions such as dynamic funding and event-based payments. Additionally, a new deposit token solution for cross-border transactions is reportedly being developed by JPMorgan.
Global banking entity JPMorgan recently launched a programmable payment feature on its private blockchain network, JPM Coin, specifically for institutional patrons. LinkedIn saw Naveen Mallela, the overseer of JPMorgan's Onyx blockchain network, unveil this latest development in a report originally shared by Bloomberg. He confirmed that this innovative payment feature is now accessible to all the bank's institutional clientele.
This feature is poised to bring real-time, programmable treasury operations and establish groundbreaking digital business frameworks. Mallela applauded the feature's introduction, referring to it as a fundamental advancement in the history of JPM Coin, and labeling the recently integrated programmability as the epitome of their blockchain platform. More information about this programmable payment feature was made available in follow-up communications with Cointelegraph. Both JPM Coin and Onyx have indicated that this feature is a "first-of-its-kind" provided by a global commercial bank, a goal long-targeted by the payments industry.
The feature caters exclusively to JPM Coin's blockchain-based accounts holders, permitting them to orchestrate their payments via a logic-based "If-This-Then-That" interface. The first ever institutional client to avail of this new feature is German tech giant Siemens AG, successfully utilizing it on November 6th. Corporations such as FedEx and Cargill are also projected to make use of the feature by the completion of 2023.
In Onyx's view, these programmable payments can effectively manage multiple automated functions including dynamic funding, where clients can set varying rules to automatically refill their bank account when it's depleted. Another example is event-based payments, which allow executing payments contingent upon specific events like margin calls, assets exchange, completion of services provision, or fulfillment of contractual duties.
A comment by Mallela emphasized the offering's potential to stimulate dynamic, event-driven features powered by blockchain technology. Siemens' group treasurer, Peter Rathgeb shared his view that the introduction of this programmable function connects the "pros and characteristics of the crypto universe" with JPMorgan’s blockchain-affiliated bank accounts. He has stated his belief that this technology will elevate Siemens' automation capabilities, enhance capital usage, facilitate data-driven digital business models as well as bolstering Siemens' business scalability.
Furthermore, JPMorgan will reportedly introduce a separate deposit token solution for transnational transactions via blockchain, distinct from its JPM Coin platform, pending U.S. regulatory approval.
Published At
11/10/2023 1:43:30 PM
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