- Siemens has issued and settled tokenized commercial paper on JP Morgan’s Onyx blockchain platform
- The transaction utilized JPM Coin and SWIAT’s blockchain to complete the process within 93 seconds
- This marks a significant collaboration between Siemens, JP Morgan, and SWIAT to expand blockchain-based financial products for commercial banks
German multinational Siemens has used JP Morgan’s Onyx blockchain platform to issue and settle €100,000 worth of tokenized commercial paper. The settlement was completed using JPM Coin and SWIAT’s blockchain, a process that took just 93 seconds. The collaboration aims to expand blockchain solutions for asset issuance in the financial sector, with the promise of faster, more flexible transactions.
SWIAT and DekaBank Assisted
Siemens, in line with Germany’s Electronic Securities Act, issued the digital commercial paper on September 13, redeeming it three days later. The transaction was facilitated through the blockchain platforms of Onyx by JP Morgan for the payment and SWIAT for asset transfer, using a delivery-versus-payment (DvP) mechanism. DekaBank acted as the regulated crypto securities registrar during the process.
This milestone marks a step forward in utilizing blockchain technology to streamline financial operations, a trend that is growing in popularity among major institutions. “By leveraging the innovative blockchain-based cash architecture of Onyx and the advanced DvP capabilities of SWIAT’s platform, Siemens is positioned to fully unlock the transformative potential of blockchain technology for payments and securities settlement,” noted Siemens Group Treasurer Peter Rathgeb.
JPMorgan Taking the Lead on Blockchain
JP Morgan has been a leader in tokenization of real-world assets, with its JPM Coin system seeing growing adoption. According to Umar Farooq, the head of Onyx, programmable features of JPM Coin have significantly boosted transaction volumes, reaching billions of dollars on some days.
This collaboration between Siemens, JP Morgan, and SWIAT is expected to further accelerate the adoption of blockchain in commercial banking.
