- JPMorgan’s JPM Coin introduces a feature enabling automatic cash transfers for companies in collaboration with Siemens AG.
- JPM Coin has tested an automated treasury solution, allowing clients to set key conditions and program their accounts to execute payments automatically based on preset conditions.
- The programmable payments feature responds to real-time events, allowing payments to be initiated based on accurate, live conditions, eliminating the need for human intervention.
JPMorgan Chase & Co’s JPM Coin, one of the most prominent blockchain systems in traditional banking, has introduced a new feature that enables companies to transfer cash automatically. In partnership with Siemens AG, they have tested an automated treasury solution the programmable payments feature allows clients to set certain key conditions and program their accounts accordingly. This enables them to move funds to cover overdue payments and margin calls.
Clients can now program their accounts to execute payments automatically based on preset conditions, ushering in a new era of flexibility and efficiency in financial transactions. Siemens AG has joined forces with JPMorgan to capitalize on this advancement in banking technology.
Naveen Mallela, Head of Coin Systems at JPMorgan’s blockchain division Onyx, emphasized the transformative nature of programmable payments. It facilitates an automated process that responds to real-time events, streamlining transactions and addressing common liquidity challenges for businesses. He asserted,
In a 24/7 society, payments should be available 24/7 too. There has been talk of programmable, real-time payments for years, and using J.P. Morgan’s proprietary Onyx Programming Language, this has now become a reality.
The programmable payments feature enables payments to be initiated based on accurate, live events, eliminating the need for human intervention to discover, calculate, and confirm conditions before execution. This transformative capability allows for faster transactions and resolves liquidity issues during periods of treasury team downtime, such as weekends, bank holidays, and overnight.
Heiko Nix, Head of Cash Management and Payments at Siemens AG underscores the importance of speed and automation in today’s fast-changing business environment. The collaboration aims to build the financial infrastructure and digital capabilities necessary for Siemens to develop a real-time treasury.
This new technology is one of the foundations for developing a real-time treasury at Siemens. In today’s fast changing environment, speed is critical for a focused technology company like ours, as new digital technologies and business models like pay-per-use or subscription models enter the market in ever-shorter cycles.
He explained that these business models require a high degree of automation. This is because there will be a significantly higher number of payments with much lower amounts at the same time, particularly when it comes to micropayments. To manage this effectively in the future, Siemens is working with J.P. Morgan to develop the necessary financial infrastructure and digital capabilities.
Unlike the traditional approach of setting standing orders for payments at specific times, clients can now leverage the programmable payments feature to respond dynamically to events. This functionality is particularly crucial in the context of the increasing prevalence of 24×7 payment infrastructure and the growing importance of addressing volatility in the financial landscape.
Recently, JPMorgan Chase forged ahead in the digital payment space by developing a blockchain-based deposit token to expedite cross-border payments, bringing a new efficiency level to a traditionally slow process. While the initial infrastructure is mostly in place, the bank is awaiting the green light from US regulators before it can fully launch the service.