JP Morgan is working with Siemens to develop a blockchain-based automated payments system. This infrastructure will be used to process automated payments between the German firm’s internal accounts.
Heiko Nix, head of cash management and payments, Siemens, told The Financial Times that the system is initially being used for US dollar transactions. The firm will process Euro transactions in 2022. Nix said higher levels of automation are needed to clear a large number of payments. Siemens will be processing a greater number of payments in the near future. The executive attributed Siemen’s adoption of blockchain technology to keep up with emerging business models in the new age.
Naveen Mallela, Onyx global head of coin systems, said the system pushes programmable payments further. He revealed that JP Morgan plans to offer the new system to more clients. And Siemens is their first client.
JP Morgan formed the Onyx platform in 2020. As such, it became the first global bank to offer a blockchain-based platform for wholesale payments transactions. JP Morgan looks forward to re-direct the way assets, money, and information are moved the world over. Onyx can drive trade and commerce flows through its advanced infrastructure. It can provide insights into liquidity, facilitate banking and transactions, as well as automate payments.
Through blockchain technology, JP Morgan wants to be at par with the fintech industry deploying innovative solutions. It acknowledges that blockchain technology is part of the solution to real-world business problems. JP Morgan wants to unlock the new technology’s potential and reach out to its clients with the best and crisp solutions.