JPMorgan Chase & Co has recently improved its blockchain-powered JPM Coin, introducing the ability for clients to automate fund movements based on preprogrammed conditions.
This new feature allows companies like Siemens AG to seamlessly transfer funds to cover overdue payments or margin calls.
JPM Coin, developed by J.P. Morgan, is a stablecoin tied to the U.S. dollar and designed to facilitate instant payments. It leverages blockchain technology and is backed by one of the largest investment banks in the world.
JPM Coin is a permissioned system that functions as a payment rail and deposit account ledger. It enables J.P. Morgan clients to transfer US Dollars held on deposit with J.P. Morgan in real-time, facilitating the movement of liquidity funding and payments.
Using blockchain technology, the programmable payments offer flexibility beyond traditional banking constraints, allowing for instantaneous and rule-based transfers.
This establishes JPMorgan as a pioneer in introducing scalable programmable payments within the realm of traditional finance.
According to JP Morgan, the system is set to be adopted by companies like FedEx and Cargill in the near future, marking a step toward broader adoption in the financial landscape.
JP Morgan and the digital assets economy
J.P. Morgan has been actively involved in the digital assets economy. Since its launch, the coin has expanded to support euro transactions, with reported transaction volumes reaching $300 billion in 2023.
However, JPM Coin is not available for purchase by the general public; it is currently limited to institutional users who exchange between crypto, the U.S. dollar, and the Euro.
In addition to JPM Coin, JP Morgan has another digital asset project called the Onyx Digital Assets platform. This platform focuses on tokenizing traditional financial assets and aims to unlock untapped utility for financial assets by enabling financial institutions, asset managers, and fintechs to participate.
The Onyx Digital Assets platform, operated by J.P. Morgan, processes daily transaction volumes ranging from $1 billion to $2 billion.
