JPMorgan launches programmable payments for institutional blockchain platform JPM Coin.

Multinational banking firm JPMorgan has released a programmatic payment feature for institutional users of its private blockchain platform JPM Coin.

Navin Malela, head of JPMorgan Bank's blockchain platform Onyx, shared details of the new functionality on LinkedIn in an initial report from Bloomberg. According to Malela, the programmable payment feature is now available to all its institutional customers.

The capability is said to enable real-time, programmable treasury functionality and new digital business models. Malela hailed the launch as a milestone in JPM Coin's evolution and described the newly introduced programming capability as the “holy grail” for the blockchain platform.

The Onyx team shared more details about the programmatic payments feature in a letter with Cointelegraph. Onyx and JPM Coin note that this feature has been a goal of the payment industry for several years and is offered as a “first of its kind” offering by the International Commercial Bank.

Related: JPMorgan Bank Deploys JPM Coin for Certain Payments in Euros

The solution offers blockchain-based accounts on the JPM Coin System, allowing users to set up payments using a “here-here-then-that” interface.

German technology company Siemens AG is the first institutional customer to use the programmable payment feature and will confirm its use as soon as November 6. FedEx and Cargill are expected to use the solution before the end of 2023.

According to Onyx, users can use programmable payments to manage many automated tasks. This includes flexible funding, which allows defining different rules to flexibly fund a defaulted bank account.

Event-based payments are another use case where users can make payments based on events, including margin calls, delivery of assets, delivery of goods and services, or fulfillment of contractual obligations.

Malela's statement highlights the potential of blockchain technology as an enabler to enable dynamic and event-based operations:

“Programmability has been a key goal for digital currencies and tokens since the beginning.”

Peter Rathgeb, group treasurer of Siemens AG, added that the introduction of programmatic capabilities from GPMorgan will focus on “the benefits and features of the crypto world” by combining blockchain-based bank accounts.

“This will take Siemens to the next level in automation to not only optimize the use of working capital, but also enable data-driven digital business models and help scale our Siemens business through the treasury.”

JPMorgan is reportedly developing a new blockchain-based solution for cross-border transactions. According to a September 7 report, the new deposit token solution is a separate offering from the JPM Coin platform and must await a regulatory green light in the United States.

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