JPMorgan sets up blockchain payments system for Siemens

Karthik Subramanian

JPMorgan has built a blockchain payments system for Siemens to handle the growing number of payments that the company has had to handle over the last few years.

JPMorgan Chase

Siemens expects the transactions volumes to continue to grow strong growth in the coming months as pay-per-use begins to gain popularity and hence the system needs to be able to handle thousands of transactions per day transparently and reliably. This is the first of its kind system to be deployed by a large company and it could set the tone for more such payments systems to be set up using blockchain in the future. This also opens the gates for mainstream usage of blockchain not only in the payments industry but allied financial services industries as well.

“If the business would stay the same as it is today, I would say we are fine regarding our treasury set-up. We can automate a bit and maybe we reduce costs and cash allocation,” Heiko Nix, head of cash management and payments at the German industrial firm, said. “This is not the reason why we are doing this. The reason is that we are seeing a huge change due to the emerging digital business models, because we will no longer be able to forecast cash, for example.”

The digitisation of financial payments, which is happening all around the globe in a fast and furious manner, has led to financial entities looking for infrastructure and systems that would support them in their efforts. Blockchain provides one a=such alternative for them and hence we are likely to see an upsurge in its use. For now, Siemens is using the blockchain system of JPMorgan, called Onyx to move funds internally within the Siemens units and it is restricted to dollars for now. It is expected that they would be adding euros to the mix in the near future.

The need would also arise shortly for banks to build systems and platforms that they would need to share and in this situation also, blockchains would turn out to be very useful and secure as the banks would need to share various data and information about users and funds to better secure their systems and make them more robust.

Read this next


SteelEye tries ChatGPT for market surveillance

This capability can be used as a starting point for initiating a surveillance investigation and to standardize workflow processes to boost the throughput and consistency of cases. It is also useful when analyzing communications in foreign languages, as the system returns the above insights in English regardless of the languages being used.

Industry News

SEC charges ex-Morgan Stanley advisor of NBA players after $13m fraud

Darryl Matthew Cohen was arrested this week and is facing three different federal counts of fraud, which could amount to 20 years in prison if convicted, besides the SEC complaint. 

Industry News

AWS FinTech Africa Accelerator launched, applications until April 27, 2023

Founders will be offered tech resources, expert guidance, and a global network of industry leaders, technologists, entrepreneurs, investors, associations, and partners, in order to build their fintech products. 

Industry News

Interactive Brokers pays unmatched interest up to USD 4.33% on cash balances over $10,000

For clients of Interactive Brokers, interest accrues daily, and payments are posted on a monthly basis. Interactive Brokers’ cash management is integrated into client broker accounts, making it simple to earn interest and borrow at the lowest rates without transferring cash.

Retail FX

FP Markets adds cTrader to roster of trading platforms that include MT4, MT5, Iress

“Our market share swings towards the more sophisticated segment of traders and we have been inundated with requests for an additional platform with more institutional-style characteristics. The addition of the cTrader trading platform offering allows our clients the choice to further shape their trading experience with us.”

Digital Assets

SEC mulls lawsuit against Coinbase’s staking and spot trading

Shares in Coinbase fell 15 percent after the US Securities and Exchange Commission threatened a potential enforcement action against the crypto exchange over certain products.

Digital Assets

Kraken halts ACH transactions amid banking crisis

San Francisco-based cryptocurrency exchange Kraken says it will no longer process Automated Clearing House (ACH) following the failure of its payments partner, Silvergate Bank.

Digital Assets

French influencers face two years in jail for promoting crypto products

France’s National Assembly’s Economics Committee voted in favor of a law that bans social media influencers from touting risky financial services, including cryptocurrencies.


Exberry’s Guy Melamed on paradigm shift with cloud-native exchanges at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Guy Melamed about Exberry’s cloud-native exchange SaaS platform certified by AWS to bring about a paradigm shift in the industry at a time of cybersecurity concerns.