First Abu Dhabi Bank (FAB) has successfully piloted programmable payments in collaboration with JP Morgan using the JPM Coin digital token, part of JP Morgan’s Onyx blockchain platform. The pilot focused on time-based and threshold balance-based account funding into deposit accounts, automating payment obligations and opening the door to dynamic, real-time funding and settlement solutions for mutual clients.
Traditional cash concentration structures often lack the flexibility of real-time features, but FAB and JP Morgan’s solution brings a programmable approach to payment execution. This allows clients to set conditions for payment initiation, with improved response times and traceability. Programmable payments can be particularly advantageous for treasurers, enabling just-in-time funding, maximizing yields, and reducing fees.
According to Naveen Mallela, co-head of Onyx, “Digital programmable ledgers will form the foundations for the finternet in the coming years.” This collaboration paves the way for multi-bank use cases and a wide range of programmable scenarios, adding greater value to clients by utilizing banks’ rich transaction data.