WHY THIS MATTERS IN BRIEF
Having banks supporting programmable and smart payments is a big step to improving payment efficiency and automation.
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First Abu Dhabi Bank (FAB) has announced they’ve successfully completed a pilot using programmable payments with JPM Coin through Onyx by JP Morgan which enables payments to be triggered at specific times or events, FAB said in a press release.
“This successful pilot opens up the possibility of a dynamic and automated funding and settlement solution to FAB and JP Morgan’s mutual clients,” the release said. “This solution will enable clients to benefit from Onyx’s real-time and/or event-based programmable capabilities.”
The Future of Money and Payments, by keynote Matthew Griffin
The pilot included FAB’s successful completion of time-based and threshold balance-based account funding into deposit accounts to execute a payment obligation, according to the release.
This innovation can provide flexibility to clients, enable banks to build a wide range of programmable scenarios, and allow treasurers to transition from cash forecasting to dynamic or Just-In-Time (JIT) funding, the release said.
The pilot will also lay the groundwork for use cases like automated and conditional invoice payments, margin funding and settlement solutions, per the release.
Naveen Mallela, head of Onyx said in the release: “We are delighted to work with the FAB to extend our programmable payment offerings to multi-bank use cases. We believe that digital programmable ledgers will form the foundations for the finternet in the coming years.”
Onyx also said in November 2023 that it had recently launched programmable payments through JPM Coin and that multinational conglomerate Siemens AG became one of the first companies to utilize the feature.
Meanwhile Peter Rathgeb, group treasurer of Siemens AG, said at the time that programmable payments provide the ability to leverage 24/7 blockchain-based bank accounts combined with programmability, which will enhance automation, optimise working capital utilisation, and support data-driven digital business models.
It was also mentioned that JP Morgan aims to use its blockchain services to boost its corporate banking market share in Switzerland as well as that those services are already being used in Germany by companies like Siemens, and that with the help of those and other offerings, the bank is working to grow its corporate banking business in Switzerland over the next three to five years.
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