First Abu Dhabi Bank (FAB) has rolled out its Programmable Payments pilot using JP Morgan's JPM Coin digital token.

The new technology allows the bank to enable programmability solutions within its technology, allowing its systems to execute specific tasks based on defined instructions, enabling payments to be triggered at specific times or events.

The technology enables clients to benefit from Onyx’s real-time and/or event-based programmable capabilities, aiming to enable a range of payment options for FAB and JP Morgan’s mutual clients, including automated funding and settlement solutions.

JP Morgan's Onyx is a blockchain network enabling the exchange of value for various types of digital assets.

As part of the pilot, FAB said successfully completed time-based and threshold balance-based account funding into deposit accounts to execute a payment obligation.

The innovation aims to deliver more flexibility to the client, using programmability systems that, unlike traditional cash concentration structures, allows real-time features and event-based configuration controlled by a bank, the company said in a statement.

The payment initiation and execution can be replicated also on the bank side, aiming to facilitate the improvement of execution response times, with finality and traceability.

JPM Coin is a blockchain-based demand deposit product offered by J.P. Morgan that allows clients to make cross-border payments between JPM Coin accounts on a 24/7, real-time basis, with most transfers completing in seconds.

Banks, with their rich transaction data, are in a better position to build a wide range of programmable scenarios, including instructions within payments and obligation-linked payments that are settled in an all-or-none manner, the company said in a statement.

“One of our foremost objectives has been to bring new and innovative digital solutions to our clients and the industry at large. We are delighted to work with the FAB to extend our programmable payment offerings to multi-bank use cases. We believe that digital programmable ledgers will form the foundations for the finternet in the coming years,” said Naveen Mallela, co-head of Onyx by JP Morgan.

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