JPMorgan has launched JPM Coin, a permissioned blockchain-based payments system, enabling programmable payments, or the automatic execution of payments.
According to Naveen Mallela, Head of Coin Systems at Onyx, JPMorgan’s blockchain business unit launched the new feature for general availability today. “This marks a significant milestone in the evolution of JPM Coin, where programmability has always been the holy grail,” stated Mallela.
Programmable payments automate transactions based on preset rules, eliminating the need for manual checks. This speeds up transactions and resolves the challenge of setting aside extra funds during treasury downtime, like on weekends and holidays. (JPM Coin operates 24/7.)
“This new feature helps clients to respond dynamically to events, which is ever more important as 24×7 payment infrastructure proliferates, and responding to volatility becomes vital,” the bank stated. JPMorgan offers its institutional clients programmable payments to enhance their treasury operations.
For instance, this feature becomes more alluring when interest rates are higher, possibly increasing the amount of money treasurers can make from deposits. In addition, the capability becomes useful for managing past-due payments and fulfilling margin calls.