JP Morgan Payments is expanding its electronic bills of exchange (BoE) product to the US ahead of legal reforms that will give digital negotiable instruments the same standing as their paper equivalents in the state of New York.
New York will adopt Article 12 to the Uniform Commercial Code (UCC) on June 3, which allows digital BoE to be legally recognised, transferred and enforced on the same basis as traditional paper instruments.
More than 30 US states that have already passed similar amendments. JP Morgan’s move comes after its rival Citi launched a digital bill of exchange product in 2024.
JP Morgan’s electronic BoE will use Enigio’s trace:original platform to help with the creation, management and storage of electronic negotiable instruments governed under the UCC amendments, the bank said.
Its decision to bring the digital product to the US follows its debut in the UK last year under the Electronic Trade Documents Act, which also gives electronic trade documents legal equivalence to paper.
South African telecoms group MTN SA completed the first transaction using a JP Morgan digital BoE, covering a shipment of goods from Asia to the UK.
“Our electronic bills of exchange and promissory note solutions help simplify trade and enable faster, more streamlined transactions between buyers and suppliers worldwide,” said Heather Crowley, global head of trade and working capital product at JP Morgan Payments.
“The move from paper to digital is not just about efficiency, it is about empowering corporate treasurers, procurement and sales directors, and operations managers to optimise working capital, streamline processes, and future-proof trade operations.”
Electronic bills of exchange “reduce the risk and operational overhead of paper”, the lender said, making it more easily accessible for a wider array of stakeholders and “enabling programmes once reserved for top relationships to scale”.
The announcement comes as the bank continues to focus on scaling its digital offerings. Last month, GTR revealed JP Morgan launched a digital platform that centralises all its working capital products, allowing companies to access real-time information all in one place.
The Working Capital Accelerator has brought an array of the bank’s solutions – including dynamic discounting, supply chain finance and receivables financing – under the same digital umbrella, with plans to add more over the next year.
