First Abu Dhabi Bank Completes Programmable Payments Pilot With JPM Coin

First Abu Dhabi Bank (FAB) successfully completed a pilot using programmable payments with JPM Coin through Onyx by J.P. Morgan.

This programmability enables payments to be triggered at specific times or events, FAB said in a Tuesday (Sept. 24) press release.

“This successful pilot opens up the possibility of a dynamic and automated funding and settlement solution to FAB and J.P. Morgan’s mutual clients,” the release said. “This solution will enable clients to benefit from Onyx’s real-time and/or event-based programmable capabilities.”

The pilot included FAB’s successful completion of time-based and threshold balance-based account funding into deposit accounts to execute a payment obligation, according to the release.

This innovation can provide flexibility to clients, enable banks to build a wide range of programmable scenarios, and allow treasurers to transition from cash forecasting to dynamic or just-in-time funding, the release said.

The pilot will also lay the groundwork for use cases like automated and conditional invoice payments, margin funding and settlement solutions, per the release.

Naveen Mallela, co-head of Onyx by J.P. Morgan, said in the release: “We are delighted to work with the FAB to extend our programmable payment offerings to multibank use cases. We believe that digital programmable ledgers will form the foundations for the finternet in the coming years.”

Onyx by J.P. Morgan said in November 2023 that it had recently launched programmable payments through JPM Coin and that multinational conglomerate Siemens AG became one of the first companies to utilize the feature.

Peter Rathgeb, group treasurer of Siemens AG, said at the time that programmable payments provide the ability to leverage 24/7 blockchain-based bank accounts combined with programmability, which will enhance automation, optimize working capital utilization, and support data-driven digital business models.

It was reported Sept. 11 that JPMorgan Chase aims to use its blockchain services to boost its corporate banking market share in Switzerland.

The report noted that those services are already being used in Germany by companies like Siemens and that with the help of those and other offerings, the bank is working to grow its corporate banking business in Switzerland over the next three to five years.