JPMorgan, the multinational banking firm, has introduced a programmable payment feature for institutional users of its private blockchain platform, JPM Coin. This new functionality aims to enable real-time, programmable treasury operations and unlock new digital business models. It is being heralded as a significant milestone in the evolution of JPM Coin and is described as the "holy grail" for the bank's blockchain platform.
Programmable Payments: A Game Changer in the Payments Industry
JPMorgan's Onyx team, responsible for the bank-led blockchain platform, revealed further details about the programmable payments feature. They noted that this has been a long-awaited goal for the payments industry and is the first-of-its-kind offering by a global commercial bank. The solution caters to blockchain-based accounts on the JPM Coin System, allowing users to program payments using an "If-This-Then-That" interface.
Siemens AG Among the First to Utilize Programmable Payments
German tech firm Siemens AG has become the first institutional client to make use of JPMorgan's programmable payments feature. Other major companies, including FedEx and Cargill, are also expected to adopt the solution by the end of 2023.
Automated Functions and Use Cases
With programmable payments, users can manage various automated functions. This includes dynamic funding, which allows the specification of rules for funding a bank account in case of shortfalls. Event-based payouts are also possible, allowing users to execute payments based on specific events such as margin calls or contractual obligations.
Unlocking the Power of Blockchain Technology
This offering is seen as a catalyst to enable dynamic and event-driven functionality powered by blockchain technology. Siemens AG group treasurer Peter Rathgeb emphasized that programmability taps into the advantages and features of the crypto world, combined with JPMorgan's blockchain-based bank accounts. This integration will not only optimize the use of working capital but also support data-driven digital business models and the scalability of Siemens' treasury operations.
Future Developments: Blockchain-Based Cross-Border Transactions
In addition to this new programmable payments feature, JPMorgan is reportedly developing a separate blockchain-based solution for cross-border transactions. However, this solution, known as the deposit token, is still awaiting regulatory approval in the United States.
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