The BMW Group has become the first company to carry out a fully automated FX transaction via JPMorgan’s Kinexys Digital Payments network, the firms announced on Tuesday.
BMW’s treasury divisions in Germany and the U.S. established predefined conditions using JPMorgan’s Programmable Payments tool, facilitating a seamless FX transaction from EUR to USD. This transaction employed a permissioned blockchain to transfer funds effortlessly between Frankfurt and New York.
This execution occurred outside of traditional settlement hours and required no manual input, enabling BMW Group to enhance liquidity and achieve nearly instant, multi-currency cross-border payments based on predetermined criteria, as stated in a press release.
“We are committed to a rigorous plan for real-time treasury based on blockchain technology and other innovative developments,” remarked Stefan Richmann, Head of BMW Group Treasury. “This first fully automated and programmable payment signifies a significant advancement for us, allowing us to expedite and streamline payment processes.”
JPMorgan has been at the forefront of exploring permissioned Ethereum variants and is increasingly pushing for innovation, including integrating the bank’s blockchain-based deposit token, JPM Coin, with Coinbase’s decentralized Base network.
“We take pride in assisting global enterprises in harnessing the combined advantages of programmable payments and continuous onchain FX settlement,” stated Akshika Gupta, J.P. Morgan’s Global Head of Client Services for Kinexys Digital Payments. “Our sole focus is on constructing next-generation financial infrastructure, and we are eager to collaborate with our clients to shape the future of finance.”
