German automaker BMW Group has become the first corporation to execute a fully pre-scheduled FX transaction using megabank JPMorgan’s Kinexys Digital Payments network, the companies said Tuesday.
BMW’s German and US treasury teams predefined terms through JPMorgan’s programmable payments application, which enabled an end-to-end automated EUR to USD currency transaction. The permissioned blockchain seamlessly transferred funds between Frankfurt and New York.
The process was completed outside traditional settlement windows and without manual intervention, allowing the BMW Group to optimize liquidity and achieve near-instant multi-currency cross-border payments based on pre-arranged conditions, according to a press release.
“We implemented a strict roadmap for real-time treasury on the basis of blockchain technology and other technological innovation developments,” said Stefan Richmann, Head of Treasury at the BMW Group. “The first fully automated and programmable payment represents a big step forward for us and will allow us to make payment processes faster and more seamless.”
JPMorgan has been a pioneer when it comes to experimenting with permissioned versions of Ethereum, and is driving more innovation lately, including adding the bank’s blockchain-based deposit token, JPM Coin, to Coinbase’s decentralized Base network.
“We are proud to help global businesses unlock the combined benefits of programmable payments and 24/7/365 on-chain currency settlement,” said Akshika Gupta, JP Morgan’s global head of client services for Kinexys Digital Payments. “Our singular focus is building next-generation financial infrastructure and we are excited to work with our customers to make the future of finance a reality.”
