JPMorgan has unveiled programmable payments features for institutional users on its private blockchain platform, JPM Coin. Naveen Mallela, the head of Onyx, J.P. Morgan's blockchain platform, announced the new capabilities on LinkedIn. The programmable payments feature is now available to all institutional clients, enabling real-time, programmable financial functions and new digital business models. Mallela described the launch as a major milestone in JPM Coin's development, referring to the programmability as the "Holy Grail" of the blockchain platform. The Onyx team stated that this feature is a "first of its kind" for commercial banks globally.
The solution works with blockchain-based accounts on the JPM Coin system, allowing users to program payments using an "If-This-Then-That" interface. Siemens, a German technology company, is the first institutional client to use the programmable payments feature, demonstrating its use on November 6. FedEx and Cargill are expected to use the solution by the end of 2023. According to Onyx, users can leverage programmable payments for various automated functions, including dynamic funding, specifying rules to dynamically fund bank accounts in case of shortages. Event-based payments are another use case, allowing users to execute payments based on events such as margin calls, delivery of assets, goods and services, or performance of contractual obligations.
Mallela emphasized the product as a catalyst for enabling dynamic and event-driven functionality powered by blockchain technology. He stated, "Programmability has been a key goal of digital currencies and tokenized currencies from the beginning." Siemens Group's head of finance, Peter Rathgeb, added that the introduction of programmability, in conjunction with JPMorgan's blockchain-based bank account, leverages "the strengths and capabilities of the crypto world," taking Siemens to a new level of automation. JPMorgan Chase is reportedly also developing a new blockchain-based cross-border trading solution. The new deposit token solution, a separate product of its JPM Coin platform, awaits approval from U.S. regulators.
