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JPMorgan enhances JPM Coin with programmable payment capabilities

TL;DR

  • JPMorgan Chase has enhanced its digital token, JPM Coin, with new programmable payment features, allowing automatic transactions under specific conditions for clients like Siemens and FedEx.
  • The programmable payments capability eliminates the need for fixed-time payment orders, enabling immediate transfers based on predefined triggers, and has been made generally available by JPMorgan’s blockchain division, Onyx.
  • JPM Coin, integral to JPMorgan’s blockchain initiatives, handles about $1 billion in daily transfers and is part of the bank’s broader strategy to integrate digital finance solutions with traditional banking services.

JPMorgan Chase has introduced new programmable features to its digital token, JPM Coin, enhancing the utility of its blockchain-based payment system. The bank’s blockchain division, Onyx, led by Naveen Mallela, has developed these features to automate payments under certain conditions. This development allows corporate clients like Siemens and FedEx to execute payments automatically when predefined triggers are met, offering a more efficient payment process compared to traditional methods.

The application of this new feature is already in practice. Siemens has utilized programmable payments for contingency fund transfers. FedEx and agricultural giant Cargill are also planning to implement this feature soon. This update to JPM Coin enables companies to bypass the need for fixed-time payment orders, allowing for immediate fund transfers under specified conditions.

JPM Coin’s growing role in global transfers

Since its introduction in 2019, JPM Coin has facilitated real-time money transfers between JPMorgan accounts worldwide. The digital token operates on JPMorgan’s Onyx blockchain, an Ethereum-based platform. It has rapidly gained traction, handling an estimated $1 billion in daily transfers. JPM Coin’s integration into JPMorgan’s larger blockchain and cryptocurrency projects reflects the bank’s interest in expanding its digital financial services.

Onyx, JPMorgan’s blockchain business unit, has launched programmable payments for general availability. The feature aims to streamline transactions for institutional clients by automating them based on preset rules. This capability is particularly beneficial for managing treasury operations during non-working days, as JPM Coin functions 24/7. Programmable payments also offer potential benefits in handling overdue payments or responding to margin calls.

JPMorgan’s commitment to blockchain technology extends beyond JPM Coin. The Onyx platform has been instrumental in various crypto-related projects, including tokenizing securities. Recently, JPMorgan helped major clients like Goldman Sachs and BNP Paribas in processing tokenized U.S. Treasuries and dollars. Last month, Onyx and TCN platforms facilitated BlackRock in tokenizing money market fund shares, later used by Barclays as collateral in an over-the-counter derivatives contract.

JPMorgan’s efforts in integrating blockchain technology with traditional banking operations reflect an ongoing trend in the financial industry. While JPM Coin currently handles a portion of JPMorgan’s daily transactions, the bank envisions expanding these services to retail consumers in the future. With this strategic move, JPMorgan aims to bridge the gap between conventional financial systems and emerging digital solutions.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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