JPMorgan has introduced programmable payments through its blockchain system, JPM Coin, marking a significant development, according to Naveen Mallela, Head of Coin Systems at Onyx, the bank’s blockchain unit.
Naveen Mallela emphasized the significance of this move, stating, “This marks a significant milestone in the evolution of JPM Coin, where programmability has always been the holy grail.”
Programmable payments enable automatic transaction execution based on predefined rules, speeding up processes and addressing challenges related to fund allocation during downtime.
Initially, for institutional clients, this feature enhances treasury functions, proving beneficial in higher interest rate periods and for managing overdue payments.
The testing phase, initiated in 2021 with Siemens AG, has progressed to include Siemens, FedEx and Cargill leveraging programmable payments on the JPM Coin platform.
While JPM Coin reached a milestone of $1 billion in daily transactions, it remains a fraction of JPMorgan’s daily traditional payment volume and plans are in place to extend it to retail consumers.
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