JPMorgan Introduces Programmable Payments on JPM Coin
Banking giant JPMorgan has upgraded its blockchain-powered payment system, JPM Coin, with a new programmable payments feature. This feature allows companies to automate fund transfers based on predetermined conditions, making it easier to cover financial obligations like overdue payments and margin calls.
This new feature is a game-changer for digital currencies and tokenized deposits, as it fulfills the long-sought ability to program payments, according to Naveen Mallela, head of Coin Systems at JPMorgan’s blockchain division Onyx. Programmable payments can help companies earn more income on deposits in low-interest rate environments.
The upgrade leverages blockchain technology to enable instant transfers at any time of day and eliminates the need for standing orders by triggering transfers when specific criteria are met. JPM Coin operates on a permissioned blockchain, limiting access to JPMorgan’s institutional clients.
Siemens AG Adopts New Technology
The programmable payments technology has already been put into action by Siemens AG, a German multinational, which configured its accounts to automatically transfer funds to address potential shortfalls. This marks a significant step in traditional financial firms building programmable payments at scale using existing commercial bank money.
Hot Take: Revolutionizing Financial Transactions
JPMorgan’s introduction of programmable payments on JPM Coin signals a revolution in financial transactions, offering companies greater control over fund transfers and the ability to optimize income from deposits. The integration of blockchain technology with traditional finance systems represents a significant step towards modernizing the global financial landscape.
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