JPMorgan introduces customizable payments for their institutional blockchain platform, JPM Coin.
JPMorgan's institutional blockchain platform, JPM Coin, has implemented programmable payment features for its users.
Global banking giant JPMorgan has introduced a programmable payment feature for users of its private blockchain platform, JPM Coin. Head of JPMorgan's Onyx blockchain platform, Naveen Mallela, shared details of this new capability on LinkedIn following an initial report from Bloomberg. Mallela noted that this feature is now available for all institutional clients, enabling real-time programmable treasury functions and new digital business models. He referred to this launch as a significant milestone in the evolution of JPM Coin, labeling the newly introduced programmability as the platform's "holy grail."
The Onyx team, in communication with Cointelegraph, highlighted this programmable payment feature as a first-of-its-kind by a global commercial bank and a longstanding goal in the payments industry. The solution caters to blockchain-based accounts within the JPM Coin System, enabling users to program payments using an "If-This-Then-That" interface.
Siemens AG, a German technology firm, is among the initial institutional clients to utilize the programmable payments feature, demonstrating its application as recently as November 6. Other companies, such as FedEx and Cargill, are anticipated to leverage the solution by the end of 2023.
The programmable payments feature allows users to manage various automated functions, including dynamic funding, where rules can be specified to dynamically fund a bank account in case of shortfalls. Another use case involves event-based payouts, allowing for payments triggered by events such as margin calls, asset delivery, and contractual obligations.
Mallela emphasized the significant role of programmability in digital currencies and tokenized money, while Siemens AG's group treasurer, Peter Rathgeb, expressed how this new feature harnesses advantages from the crypto world, enhancing automation and supporting data-driven digital business models for Siemens.
Apart from this development, JPMorgan is reportedly working on a blockchain-based solution for cross-border transactions, separate from the JPM Coin platform. However, regulatory approval in the United States is required before the launch of this new deposit token solution.