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, global head of coin systems at Onyx, Naveen Mallela said. 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.
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