In Brief:
- JPMorgan Chase has teamed up with Siemens to build a blockchain-based payment system.
- The system will transfer money between Siemens’ own accounts automatically
- Siemens is the first anchor client of JPMorgan’s blockchain unit Onyx, which is used to build the infrastructure.
According to the Financial Times report, banking giant JPMorgan Chase has teamed up with Siemens, a German industrial conglomerate, to build a blockchain payment system.
The new Distributed Ledger Technology (DLT) will be used to transfer money between Siemens’ own accounts automatically. Although for the time being it will be carried out in US dollars while may begin with euros from next year.
According to the article, the application would be targeted on automating the many steps required in the recording and verification of payments.
Siemens is the first anchor client of JPMorgan’s blockchain unit Onyx, which is used to build the infrastructure.
According to Naveen Mallela, Onyx’s global head of coin systems, the US financial behemoth has a pipeline of clients for the Onyx system.
He also thinks that the infrastructure will expand the usage of programmable payments beyond present applications such as direct debits and standing orders.
The upcoming expansion indicates a growing desire among large institutions throughout the world to adopt blockchain technology to increase the efficiency and cost-effectiveness of their day-to-day operations.
Earlier at the beginning of this year DBS, JPMorgan, and Temasek have announced plans to establish a blockchain-based open industry platform for cross-border payments. The association generated an open platform through a blockchain technology company called “Partior.”
Also Read: Bank ABC Using JPMorgan’s Onyx Blockchain For Cross-Border Payments
