Multinational banking company JPMorgan has launched a programmable payment feature for corporate users of its private blockchain platform JPM Coin.
The solution will enable real-time activation of programmable treasury functions and new digital business models. Mallela hailed the launch as a significant milestone in JPM Coin’s evolution, calling the newly introduced programmability the “Holy Grail” for the blockchain platform.
The Onyx team shared more details about the programmable payment feature in a correspondence with Cointelegraph. Onyx and JPM Coin emphasize that this feature has been a focus of the payments industry for several years, describing their offering as the “first of its kind” from a global commercial bank.
The offering targets the JPM Coin system’s blockchain-based accounts and allows users to schedule payments using an “If-This-Then-That” interface.
German technology company Siemens AG became the first corporate customer to use the programmable payment feature, revealing its functionality 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 various automated functions. These include dynamic funding, which allows you to set a set of variables for dynamic funding of a bank account in case of funds shortage.
Event-based payments is another use case where users can make payments based on specific events, including margin calls, delivery of assets, goods, and services, or fulfillment of contractual obligations.
Mallela’s statement highlights that the offering acts as a catalyst to enable dynamic, event-driven features powered by blockchain technology:
“Programmability has been a key goal for digital currencies and tokenized money since the beginning.”
Peter Rathgeb, group treasurer of Siemens AG, added that the introduction of programmability, together with JPMorgan’s blockchain-based bank accounts, takes advantage of “the advantages and features of the cryptocurrency world.”
“This will take Siemens to the next level of automation, not only to optimize the use of working capital, but also to enable data-driven digital business models and support the scalability of our Siemens business from treasury.”
JPMorgan also has a new blockchain based solution For cross-border transactions. According to a Sept. 7 report, the new deposit token solution will form a separate offering from the JPM Coin platform and will have to wait for regulatory green light in the United States.
Translation by Walter Rizzo