BMW Group has improved treasury management with the use of programmable FX onchain payments through Kinexys by J.P. Morgan.
Following this announcement, BMW Group is set to unlock automatic EUR to USD foreign exchange (FX) in order to support its international treasury management by leveraging Programmable Payments on Kinexys Digital Payments, which represents a private, permissioned blockchain network from J.P. Morgan.
The first transaction involved automated and secure balance checks, conditional auto-deposits, near real-time FX transactions, and transfers between BMW Group’s Blockchain Deposit Accounts in the regions of Frankfurt and New York. Kinexys by J.P. Morgan enabled FX on its private, permissioned blockchain through the use of pre-defined and fully automated instructions, representing an important development for institutional treasury management.
Optimising treasury management and developing the institutional finance market
According to the official press release, BMW Group’s German and US treasury teams pre-defined conditions through Programmable Payments that, when met, allowed a secure and automated, end-to-end FX transaction from EUR to USD. At the same time, the process was completed outside traditional settlement windows and without manual intervention, allowing BMW Group to improve liquidity and achieve multi-currency cross-border payments and transactions based on pre-set conditions.
The institution also implemented a stringent roadmap for real-time treasury on the basis of blockchain technology and other technological developments. BMW Group and J.P. Morgan Payments are expected to continue to collaborate closely in order to address the evolving needs of global treasury operations, while also driving growth and efficiency in cross-border payments and liquidity management. BMW Group’s adoption of Kinexys Digital Payments’ Programmable Payments and onchain FX settlement represents an initiative that highlights the transformative potential of blockchain-based payments infrastructure, as well as simplifying complex workflows and enabling 24/7/365 payment automation for clients and partners.
