Wall Street bank JPMorgan Chase has partnered with German industrial group Siemens to develop a blockchain-based system for payments, the Financial Times reported on Monday.
- The system will be used to automatically transfer money (in U.S. dollars for the time being with euros to be supported next year) between Siemens’ own accounts.
- The application would be geared toward the automation of the various actions required in the recording and verification of payments, the report added.
- The infrastructure uses JPMorgan’s blockchain unit Onyx, of which Siemens is the first anchor client.
- The U.S. banking giant has a pipeline of clients for the Onyx system, said Naveen Mallela, Onyx’s global head of coin systems. The infrastructure will take programmable payments beyond current uses like direct debits and standing orders, Mellela said.
- This development represents the growing appetite among the world’s major institutions to harness blockchain technology to improve the efficiency and cost of their day-to-day operations.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.