JPMorgan To Develop Blockchain Payment Platform for Siemens
The US banking behemoth JPMorgan Chase has collaborated with the German industrial organization Siemens to build a blockchain platform for the group’s remittances, in what the two corporations claim to be the first ever use of blockchain technology in such an application. It focuses on the solutions that banks are attempting to develop for blockchain — a digital ledger system that documents and validates money transfers and supports cryptos including bitcoin — in order to extend automation to domains such as remittances.
As a result of the increasing adoption of payment methods such as pay pay – per – usage, Siemens believes that enhanced automation will be required to handle the surge in the quantum of payments that it anticipates.
“If the firm continues to operate in the same manner as it does now, I would conclude we are in good shape in terms of our treasury frame,” Siemens’ Heiko Nix, who is in charge of cash administration and payments, told the Financial Times. “we can automate a little piece and perhaps we can cut expenses and cash assignment. That’s not the purpose for why we are undertaking this endeavor. As a result of the evolving digital economy, we are experiencing a significant shift, and we will be unable to estimate cash flows, for illustration.”
The technology is being utilized to move money between Siemens’ internal accounts in a fully automated manner. It is presently only utilized for US dollar payments, but there are intentions to expand its usage to include euro transfers by the end of the year. The corporations refused to provide information on the number of payments that have been handled using the latest system to yet.
According to Naveen Mallela,chief of coin systems at Onyx, the framework, which was created with Siemens by JPMorgan’s blockchain subsidiary, Onyx, expands the usage of programmable transactions outside existing applications such as direct debits and written instructions. In Mallela’s opinion, the present framework lacks flexibility. “You need additional flexible rules or even more flexible actions,” he said.
However, JPMorgan has a queue of customers to whom it would want to provide the latest system, according to Mallela, who added that Siemens is the system’s initial cornerstone customer.A week back, HSBC and Wells Fargo announced an agreement to execute currency deals directly on blockchain, marking another step forward in the financial industry’s ambitions to integrate blockchain technology into their operations.