JPMorgan, a multinational financial institution, has enabled institutional users of its private blockchain platform, JPM Coin, to execute programmable payments.
Naveen Mallela, the leader of Onyx, a blockchain platform headed by JP Morgan’s banks, disclosed information regarding the new features on LinkedIn, citing an initial report from Bloomberg.
Mallela asserts that the programmable payments functionality is currently accessible to its entire clientele of institutions.
It is stated that the capability will permit programmable, real-time Treasury operations and novel digital business models.
Mallela lauded the public debut of JPM Coin, characterizing the recently implemented programmability as the “holy grail” of its blockchain platform, a momentous achievement in the coin’s development.
Onyx and JPM Coin emphasize that the payments industry has been striving for this feature for several years, and they promote their product as a “first-of-its-kind” offering from a global commercial bank.
The solution enables users of blockchain-based accounts on the JPM Coin System to program payments through an “If-This-Then-That” interface.
Siemens AG, a German technology company, demonstrated the functionality of the programmable payments feature on November 6, becoming the initial institutional customer to employ it.
It is anticipated that FedEx and Cargill will implement the solution by the conclusion of 2023 as well. Onyx asserts that programmable payments enable users to oversee a variety of automated functions.
This incorporates dynamic funding, which permits the specification of a variety of rules to fund a bank account dynamically in the event of insufficient funds.
Another use case is event-based payouts, in which users can initiate payments in response to specific occurrences such as margin calls, the delivery of assets, products, and services, or the fulfillment of contractual obligations.
Mallela’s statement emphasizes the offering as the catalyst that enables blockchain-powered dynamic and event-driven functionality.
“Programmability has been a key objective for digital currencies and tokenized money since the beginning.”
In conjunction with JPMorgan’s blockchain-based bank accounts, the introduction of programmability leverages “advantages and features from the crypto world,” according to Peter Rathgeb, group treasurer of Siemens AG.
In addition, it is believed that JPMorgan is creating a novel blockchain-powered solution for international transactions.
“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.”
The new deposit token solution, according to a report from September 7, is a distinct offering from the JPM Coin platform and must await regulatory approval in the United States.