Banking firm JPMorgan has rolled out a programmable payment feature for institutional users of its blockchain-powered payment system, JPM coin.
*JPMORGAN LAUNCHES PROGRAMMABLE PAYMENTS IN NEW BLOCKCHAIN PUSH
— zerohedge (@zerohedge) November 10, 2023
The announcement, made on November 10 through a press release, details how clients can utilize the new system to program payments for various financial operations.
This payment functionality enables users to customize rules for funding a bank account in the event of an overdue payment or executing payments like margin calls.
The feature now available to the general public will pave the way for real-time, automated, and customizable payment operations and revolutionize how transactions are processed.
This development is particularly noteworthy at a time when digital currencies and tokenized fiat are experiencing significant growth.
Naveen Mallela, the head of Coin Systems at Onyx, a JPMorgan subsidiary, highlighted the importance of programmability as a key driver for the sustainability of digital assets.
She emphasized that the latest service will enable users of the JPM coin to automate transactions based on preset rules and avert the requirement for manual checks.
This speeds up transaction processes and provides sustainable solutions to potential downtime during weekends and holidays.
JPMorgan and Siemens AG, a renowned German tech company, started the testing phase of programmable payments in 2021.
However, according to a recent The Block report, the German platform completed its initial payment on November 6 to address potential transaction issues.
Other prominent organizations, including FedEx and Cargill, are expected to incorporate the new payment solution in the coming weeks.
The Blockchain Permeats Traditional Finance Sector
The introduction of JPMorgan’s programmable payments aligns with a broader trend observed among major financial institutions, including HSBC, Euroclear, and Goldman Sachs.
These institutions are actively leading the way in incorporating blockchain technology into traditional finance, driving innovations in the industry.
A notable example is HSBC’s recent foray into blockchain technology for trading. The banking giant announced plans to unveil a platform in collaboration with Swiss digital assets firm Metaco.
This platform will allow institutional customers to hold blockchain-based tokens representing non-crypto assets.
The development follows HSBC’s introduction of a blockchain platform for gold trading, where distributed ledger technology (DLT) is utilized to tokenize ownership of physical gold stored in its London vault.
London financial giant HSBC announced that it has launched tokenized ownership of physical gold held in its London vaults Wednesday November 1st, noting its use of distributed ledger technology (DLT) to trade the assets. Clients will have a permissioned digital representation of… pic.twitter.com/GipGK58PBY
— XRPDAILY (@XRPXLMVERSE) November 2, 2023
The platform creates digital tokens, each representing ownership of specific gold bars. These digital tokens can be traded seamlessly through HSBC’s platform, providing a more efficient and transparent method for investors to buy and sell ownership stakes in physical gold.
The post JPMorgan Launches Live Programmable Payments With JPM Coin, Siemens, FedEx Become Early Adopters appeared first on Cryptonews.
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