J.P. Morgan Launches Programmable Payments Using JPM Coin


Onyx by J.P. Morgan has launched programmable payments, believed to be a first-of-its-kind offering from a commercial bank globally.

The solution is a new feature for blockchain-based accounts on the JPM Coin System, allowing users to program payments for the first time using an intuitive “If-This-Then-That” interface.

Siemens AG executed its first payment using the programmable payments functionality on November 6th. FedEx and Cargill are planning to go live in the coming weeks.

Payments have long been limited by the type of “rules” and “conditions” which could be executed on them. Standing orders, for example, used to be the most ubiquitous type of rule available. Programmable Payments gives the ability to “program” a more expansive set of rules on JPM Coin accounts / BDAs.

Programmable Payments uses a new portal available on JPM ACCESS – J.P. Morgan Payments’ online treasury portal.

The programmability allows the clients to place rules on their payments in a DIY manner, with a level of control not currently available for payments. Clients can use programmable payments for areas like:

  • Dynamic Funding – Ability to specify a range of rules for funding a bank account in a dynamic manner in case of shortfalls
  • Event-based payouts – Ability to execute payments based on events like margin calls, delivery of assets/goods, fulfilment of contractual obligations etc.

This new feature helps clients to respond dynamically to events which is ever more important as 24X7 payment infrastructure proliferates, and responding to volatility becomes vital.

Blockchain technology is the ideal infrastructure to which programmable payments can be applied as it enables rules and bank accounts to be integrated in a native manner, enabling cases including dynamic direct debits and multi-party escrow accounts.

Naveen Mallela, Head of Coin Systems, Onyx by J.P. Morgan said, “Programmability has been a key objective for digital currencies and tokenised money since the beginning. Our new offering makes payments programmable ushering in the era of dynamic and event driven infrastructure in the industry. This is an important milestone and foundational for real-time, automated and programmable treasury.”

Dr. Peter Rathgeb, Group Treasurer of Siemens AG, said, “Advantages and features from the crypto world are now available for fiat currencies by J.P. Morgan’s provision of 24×7 blockchain-based bank accounts, combined with programmability. This will take Siemens to the next level of automation to not only optimise the use of working capital but also enable data-driven digital business models and support the scalability of our Siemens business from the treasury side.”

“Our collaboration with J.P. Morgan is one example of how we use innovative technologies, like blockchain, to fuel our future and we have recently gone live with Onyx, JPM Coin.” said Rebeca Fujimura Wiadacz, Staff Director of Global Cash Management at FedEx Corporation.

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