JPMorgan’s permissioned blockchain-based JPM Coin payments system is now operational for programmable payments, or automated payment execution.
The new feature was made generally available today by Onyx, the blockchain business unit of JPMorgan, according to Naveen Mallela, Head of Coin Systems at Onyx. “This marks a significant milestone in the evolution of JPM Coin where programmability has always been the holy grail,” Mallela stated.
Manual checks are superseded by automated transactions driven by pre-established rules with programmable payments. This minimizes the difficulty of setting aside additional funds during treasury downtime, such as weekends and holidays, and expedites transactions. (JPM Coin runs continuously.)
JPMorgan offers its institutional clients programmable payments with the goal of enhancing their treasury operations. For instance, this feature becomes more alluring when interest rates are higher, possibly increasing the amount of money treasurers can make from deposits. In addition, the feature proves useful for managing past-due payments and fulfilling margin calls.
JPMorgan and Siemens AG, its innovative partner, began testing programmable payments in 2021. This week, the German tech giant officially launched the JPMorgan feature by using programmable payments to address any shortfalls. In the upcoming weeks, two more businesses—FedEx and Cargill—are anticipated to make use of the feature.
In order to facilitate blockchain-based payments for institutional clients, JPMorgan launched JPM Coin in 2019. With $1 billion in daily transactions processed, JPM Coin achieved a significant milestone last month. Still, this sum pales in comparison to the $10 trillion in payments that JPMorgan processes on a daily basis via its conventional channels. In the future, JPMorgan intends to open up the JPM Coin payment system to retail customers.