JPMorgan forges a partnership with Siemens for blockchain transactions

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TL;DR Breakdown

  • JPMorgan partners with Siemens to come up with a digital remittance system.
  • Siemens became the first customer to be served by JPMorgan through its new remittance system.

JPMorgan, a reputable American bank, has forged a partnership with Siemens to develop a Blockchain payment system. The association has already done its work, and Siemens is the first user to be served by the new remittance system.

JPMorgan has completed the development and testing of its first blockchain payment system. The bank said that their joint effort with Siemens had born this success, and Siemens was served as the first client on the new system.

JPMorgan and Siemens team up for blockchain payment solutions

Siemens has revealed that its payments services demand has been spiking lately. It has associated the increase with their application of the pay-per-use model gaining popularity recently. As a result, they needed a better system, thus tapping into blockchain technology’s advantages.

A Siemens spokesperson said that there are upcoming digital technologies that the traditional ones can’t stand up to. The new system will facilitate the remittance of money between Siemen’s accounts. Currently, the cash is being transmitted in USD, but EUR will also be available starting 2022.

However, the company did not reveal the actual volume of cash that will be wired using the chain; per JPMorgan, the chain was developed by their unit Onyx. The bank also said that a stream of clients was already asking to test their new project. However, the bank has agreed with Siemens to let the technology corporation utilize it first.

JPMorgan is not the only financial institution showing its faith in blockchain technology. Recently, Wells Fargo and HSBC also made a pact to use the DLT payment system for their trades.

Banks figure out their way around blockchain and crypto adoption

JPMorgan is not the only bank figuring its way around crypto adoption. It already has a blockchain network that serves other institutions like the SBI. However, it is also coming up with solutions to offer crypto services to its clients. Earlier in the year, its CEO said that the bank would offer BTC services to its users. He said that even though he does not believe in the coin, his bank would offer safe trading services to its clients.

Other banks are also applying the use of blockchain technology for remittances. In November 2021, the European Central Banks revealed that they were planning on using a blockchain network to facilitate their transactions. However, they said that their new system would not replace the current systems. The Central Banks of Italy and Germany declared that they would use DLT to facilitate their transactions.

Per a report from Cryptopolitan, other banks in the US are planning to introduce the option of declaring BTC as collateral for loans. The banks include Goldman Sachs. However, the regulators in the US are yet to reveal their take about such loans.

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Ryan Salame
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