JPMorgan Chase & Co (JPM), using one of the most famous blockchain technologies in modern banking, has just implemented a new feature that lets companies immediately carry out their transactions.
JPM Coin now enables clients to program their accounts by incorporating a set of crucial conditions. This functionality empowers them to transfer funds to address overdue payments and margin calls. Additionally, there are prospects for leveraging this feature to capitalize on variances in exchange rates, as reported by Bloomberg on November 10.
Leveraging blockchain technology, transfers are nearly instantaneous and available 24/7, in contrast to traditional banking, where transactions are typically batched during working hours. The recent addition to JPM Coin eliminates the necessity for setting standing orders at specific times or amounts. Instead, the function activates when the preprogrammed criteria are met.
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“If you think of the current bank account provided by any financial institution, there is only so much you can do in terms of configurability and set of rules; that is what we are changing. We believe this is the first instance of a traditional financial firm building programmable payments at scale, using existing commercial bank money,” said Naveen Mallela, head of Coin Systems at JPMorgan’s blockchain division Onyx.
Recent implementations of blockchain technology
Last week, HSBC Holdings announced that using blockchain technology provided by the China-based Ant Group, it has successfully conducted test token deposits in intra-group treasury transactions.
Additionally, last month, the Governing Council of the European Central Bank (ECB) revealed its progression to the subsequent phase of the digital euro project. It is now initiating the groundwork for potential issuance, although a final decision on issuance has yet to be confirmed.
These recent implementations signal a strong willingness by mainstream banking institutions and financial governing bodies to implement blockchain technology and that they see it as a fundamental part of the future of the banking world.
