First Abu Dhabi Bank (FAB) has carried out a programmable payments pilot using JPMorgan's JPM Coin digital token.

Programmability is the ability of the system to execute specific tasks based on defined instructions. FAB claims it is the first financial institution to complete the programmable payment pilot with JPM Coin, enabling payments to be triggered at specific times or events.

The bank said it worked with JPMorgan's blockchain unit Onyx, to complete time-based and threshold balance-based account funding into deposit accounts to execute a payment obligation.

The technology could expand the range of payment options for FAB and JPMorgan’s mutual clients, including automated funding and settlement solutions.

FAB added that the technology provides more flexibility for the client as programmability systems use real-time and event-based configuration unlike cash concentration structures.

“One of our foremost objectives has been to bring new and innovative digital solutions to our clients and the industry at large,” said said Naveen Mallela, co-head of Onyx by JP Morgan.
“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.”

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