FAB Completes Successful Pilot Of Programmable Payments With JPM Coin

First Abu Dhabi Bank (FAB) has completed a pilot project involving programmable payments using JPM Coin, according to a press release issued by the bank. The pilot was conducted in collaboration with Onyx, a blockchain-based platform developed by J.P. Morgan.

FAB stated that this new programmability feature allows payments to be triggered by specific times or events, offering greater control over payment processes.

First Abu Dhabi Bank Aims To Transform Payment Processes With Real-Time Features

According to the bank, this successful trial has opened the door to a more dynamic and automated way to handle funding and payments for both FAB and J.P. Morgan’s shared clients. The new payment solution is expected to help clients by using Onyx’s real-time and event-based programmable payment features.

The bank explained that during the pilot, it successfully finished transactions based on time and account balance limits. These accounts were used to add money to deposit accounts and meet payment needs.

FAB said this progress could allow clients to work with more flexibility, enabling banks to create many programmable payment options. This would also let treasurers move away from old cash forecasting methods and use more dynamic or just-in-time funding choices.

FAB’s press release also revealed that the pilot could be the starting point for many future uses, like automated invoice payments, margin funding, and other settlement solutions. The bank believes this technology will greatly improve financial operations by making payment processes quicker, more flexible, and easier to manage.

FAB Seeks To Expand Programmable Payment Services Across Banks

Naveen Mallela, co-head of Onyx by J.P. Morgan, highlighted how important the teamwork is. He said the company was happy to work with FAB to expand its programmable payment services to include many banks. He added that digital programmable ledgers would likely be the basis for new financial innovations, calling this idea part of the “finternet.”

Onyx by J.P. Morgan first introduced its programmable payments feature through JPM Coin in November 2023, with the large company Siemens AG being one of the first to use it.

Siemens Group Treasurer Peter Rathgeb said that programmable payments let users take advantage of blockchain-based bank accounts that work 24/7. He added that combining these accounts with programmable features will improve automation, make better use of working capital, and help data-driven digital business models.

Earlier this month, on Sept. 11, reports stated that JPMorgan Chase wants to expand its blockchain services to grow its corporate banking market share in Switzerland. These blockchain services are already being used by companies in Germany, including Siemens.

JPMorgan believes that by offering these and other services, it can increase its corporate banking business in Switzerland over the next three to five years.