After starting trials of JPM Coin back in 2019, late last year Onyx by JP Morgan rolled out programmable payment functionality, with Siemens as the initial client to use it. Now First Abu Dhabi Bank (FAB) is the first financial institution to pilot the functionality, following its initial use of the blockchain-based bank account system last year.
FAB’s latest trials included initiating payments based on time triggers and balance thresholds. In the simplest scenario, one can imagine a corporate treasurer could program the transfer of funds out of an account if the balance is too high, or into the account if it’s too low. Or, a planned payment is only sent out depending on its impact on the account balance.
“One of our foremost objectives has been to bring new and innovative digital solutions to our clients and the industry at large,” said Naveen Mallela, Co-Head of Onyx by J.P. Morgan. “We believe that digital programmable ledgers will form the foundations for the finternet in the coming years.” The reference to the finternet is a nod to the vision of tokenized and programmable money outlined by the BIS head Agustín Carstens.
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