JP Morgan’s Onyx Blockchain Used for Siemens’ Digital Commercial Paper Settlement

German commercial giant Siemens AG tapped worldwide bank JPMorgan’s blockchain-based payment system Onyx and SWIAT’s personal blockchain to provide and settle a tokenized variation of its business paper, the business stated on Monday.

Siemens provided EUR100,000 worth of crypto securities under the German Electronic Securities Act (eWpG) on September 13, then redeemed it 3 days later on. The payments were performed on the Onyx network utilizing the JPM Coin System, while possession transfers were picked the SWIAT network’s delivery-versus-payment (DvP) system.

The entire procedure took 93 seconds from the verification of the trade by the celebrations on SWIAT to last verification of settlement sent out to the celebrations that possession and payment transfers were finished. DekaBank likewise got involved, functioning as a controlled crypto securities registrar on the SWIAT network.

The deal marked the start of Onyx and SWIAT teaming up to establish property issuance items on blockchain rails for industrial banks. Their objective is to reduce worth chains, increase deal versatility and speeds, and eventually make monetary deals by means of blockchain rails scalable for industrial banks, the business stated.

Tokenization of conventional monetary instruments, or real-world properties (RWA), has actually been a fast-growing location for blockchain innovation with huge banks getting significantly included. JPMorgan has actually been among the early leaders in the area with Onyx and its JPM Coin blockchain-based settlement tech.

Deals with JPM Coin have “blew up” after presenting programmability to the network, with deals reaching several billions of U.S. dollars on some days, Umar Farooq, previous head of Onyx by JP Morgan, presently co-head of Payments, stated in May throughout a panel conversation at Consensus 2024.

“We’re most likely among the larger users of blockchain,” stated JPMorgan CEO Jaime Dimon at a current occasion at Georgetown University, though he argued that the innovation is simply a database. Dimon has actually been an outspoken critic of cryptocurrencies, calling them “pet rock” on numerous celebrations.

Jesse Hamilton contributed reporting to the story.

Modified by Stephen Alpher.

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