JPM Coin runs on a permissioned version of the Ethereum blockchain called Onyx.
JPMorgan Chase & Co.’s proprietary digital token, JPM Coin, has added a new programmable feature that allows corporate clients to set payment condition triggers. Early adopters of the feature include German industrial giant Siemens and shipping company FedEx.
“When we talk about digital currencies and tokenized deposits, the goal we’re looking for is always the ability to programmatically make payments,” said Naveen Mallela, head of Coin Systems at JPMorgan’s blockchain unit Onyx.
With programmable payments, companies can configure their accounts to automatically transfer funds when certain preset conditions are met, such as an overdue invoice or a margin call. This eliminates the need to place payment orders at fixed times or for fixed amounts. Instead, transfers can occur instantly whenever a predefined rule is triggered.
Siemens used programmable payments this week to set up an emergency funds transfer, Malela said. FedEx and agriculture group Cargill also plan to use the feature soon.
The new functionality builds on JPM Coin’s existing capabilities to facilitate real-time transfers between JPMorgan accounts around the world. The digital token was launched in 2019 and runs on the bank’s permissioned Ethereum-based blockchain, Onyx. It has seen rapid adoption and is reportedly processing $1 billion in transfers per day.
JPMorgan Chase is active in blockchain, tokenization, and other crypto-related projects. Its Onyx platform also supports trading tokenized securities. The bank recently helped major clients such as Goldman Sachs and BNP Paribas process nearly $700 billion in tokenized Treasuries and U.S. dollars.
Last month, JPMorgan’s Onyx and TCN platforms enabled BlackRock to tokenize money market fund shares, which Barclays then accepted as collateral for over-the-counter derivatives contracts.
