Global: First Abu Dhabi Bank Completes Pilot for Programmable Payments Using JPM Coin

First Abu Dhabi Bank (FAB) has successfully concluded a pilot program leveraging programmable payments via JPM Coin, a digital currency developed through J.P. Morgan’s Onyx platform. This innovation enables payments to be automatically triggered based on pre-defined events or conditions, FAB announced in a press release on Tuesday (Sept. 24).

According to the statement, this successful pilot sets the stage for a more dynamic and automated approach to funding and settlement for mutual clients of FAB and J.P. Morgan. The new solution will allow clients to benefit from Onyx’s real-time and event-based programmable payment features, offering greater flexibility and efficiency.

As part of the pilot, FAB utilized time-based and balance-based account funding into deposit accounts to meet payment obligations, demonstrating the potential of programmable payments. This capability will enable financial institutions and treasurers to move away from traditional cash forecasting and adopt more dynamic funding models such as just-in-time funding, the release added.

The success of the pilot also paves the way for future use cases, including automated and conditional invoice payments, margin funding, and settlement solutions. These innovations could greatly enhance operational efficiency for corporate clients.

Naveen Mallela, Co-Head of Onyx by J.P. Morgan, expressed his excitement about the collaboration, stating, “We are thrilled to partner with FAB to extend our programmable payment solutions to multibank use cases. We believe programmable digital ledgers will be foundational to the financial internet in the near future.”

The launch of programmable payments through JPM Coin was first announced by Onyx in November 2023, with multinational conglomerate Siemens AG being one of the early adopters. Siemens Group Treasurer Peter Rathgeb highlighted the benefits of programmable payments, including improved automation, better working capital utilization, and support for data-driven digital business models.

JPMorgan Chase has been increasingly deploying its blockchain services to expand its corporate banking footprint. On Sept. 11, it was reported that the bank aims to increase its market share in Switzerland, where it plans to introduce blockchain services already used by companies in Germany, such as Siemens. JPMorgan is looking to grow its corporate banking presence in Switzerland over the next three to five years through these and other digital solutions.