Multinational banking company JPMorgan Chase has launched programmable payments functionality for institutional users of its private blockchain platform JPM Coin.
Naveen Mallela, head of Onyx, a blockchain platform led by JPMorgan Chase Bank shared Learn more about new features on LinkedIn via the initial link Report From Bloomberg. Mallela said the programmable payments feature is now available to all institutional clients.
The feature is said to enable instant, programmable financial functions and new digital business models. Mallela hailed the launch as an important milestone in the development of JPM Coin, describing the newly introduced programmability as the “holy grail” of its blockchain platform.
The Onyx team shared more details about the programmable payments feature with Cointelegraph. Onyx and JPM Coin noted that this feature has been a goal of the payments industry for years and called their product a “first of its kind” for commercial banks worldwide.
related: JPMorgan Chase Bank deploys JPM Coin for euro-denominated payments
The solution works with blockchain-based accounts on the JPM Coin system, allowing users to program payments using an “If-This-Then-That” interface.
German technology company Siemens AG was the first institutional client to use the programmable payments feature, recently demonstrating its use on November 6. FedEx and Cargill are also expected to use the solution by the end of 2023.
According to Onyx, users can use programmable payments to manage a variety of automated functions. This includes dynamic funding, which allows specifying a set of rules to dynamically fund bank accounts in the event of a shortage.
Event-based payments 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.
Mallela’s statement highlighted the product as a catalyst for enabling dynamic and event-driven functionality powered by blockchain technology:
“Programmability has been a key goal of digital currencies and tokenized currencies from the beginning.”
Siemens Group Finance Chief Peter Rathgeb added that the introduction of programmability in conjunction with JPMorgan’s blockchain-based bank account leverages “the advantages and capabilities of the crypto world.”
“This will take Siemens to a new level of automation, not only optimizing the use of working capital, but also enabling data-driven digital business models and supporting the scalability of Siemens’ business from a financial perspective.”
It is understood that JPMorgan Chase is also developing a new blockchain-based cross-border trading solution. According to a report on September 7, the new deposit token solution is a separate product of its JPM Coin platform and must await approval from U.S. regulators.
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