Multinational banking firm JPMorgan has rolled out a programmable payment feature for institutional users of its private blockchain platform JPM Coin.
Naveen Mallela, who heads up JP Morgan’s bank-led blockchain platform Onyx, shared details of the new functionality on LinkedIn via an initial report from Bloomberg. According to Mallela, the programmable payments feature is now available to all its institutional clients.
The capability is said to enable real-time, programmable treasury functionality and new digital business models. Mallela hailed the launch as a significant milestone in the evolution of JPM Coin and described the newly introduced programmability as the ‘holy grail’ for its blockchain platform.
The Onyx team shared further details of the programmable payments feature in correspondence with Cointelegraph. Onyx and JPM Coin note that this feature has been a goal for the payments industry for several years and touts its offering as a “first-of-its-kind” by a global commercial bank.
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The solution caters to blockchain-based accounts on the JPM Coin System, allowing users to program payments using a “If-This-Then-That” interface.
German tech firm Siemens AG is the first institutional client to make use of the programmable payments feature, proving its use as recently as Nov. 6. FedEx and Cargill are also expected to make use of the solution before the end of 2023.
According to Onyx, users can use programmable payments to manage several automated functions. This includes dynamic funding, which allows the specification of a range of rules for dynamically funding a bank account in case of shortfalls.
Event-based payouts are another use case, where users can execute payments based on events including margin calls, delivery of assets, goods and services or fulfillment of contractual obligations.
A statement from Mallela highlights the offering as the catalyst to enable dynamic and event-driven functionality powered by blockchain technology:
“Programmability has been a key objective for digital currencies and tokenized money since the beginning.”
Siemens AG group treasurer Peter Rathgeb adds that the introduction of programmability taps into the “advantages and features from the crypto world” in combination 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 also understood to be developing a new blockchain-based solution for cross-border transactions. As per a Sep. 7 report The new deposit token solution is a separate offering from its JPM Coin platform and will have to await the regulatory green light in the United States.
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