Mastercard and JPMorgan Collaborate on Blockchain-Based Cross-Border Payments
Mastercard’s Multi-Token Network (MTN) has partnered with JPMorgan’s Kinexys Digital Payments to streamline business-to-business cross-border transactions. This collaboration enables mutual customers to settle payments through a unified application programming interface (API), enhancing speed and transparency.
Enhanced Payments with MTN and Kinexys
The integration between MTN and Kinexys addresses “time zone friction” and offers real-time settlement capabilities. According to Naveen Mallela, co-head of Kinexys by JPMorgan, the partnership strengthens the value of commercial transactions by integrating payment rails into digital platforms seamlessly.
MTN’s blockchain-based tools will leverage Kinexys’ payment infrastructure to improve transaction efficiency. Raj Dhamodharan, Mastercard’s EVP of blockchain and digital assets, expressed excitement about the integration, emphasizing its potential to bring innovative use cases to life.
Kinexys’ Evolution and Growth
Launched in 2020 as Onyx, Kinexys began as a blockchain platform for cross-border payments powered by the JPM Coin, a dollar-pegged digital asset. Initially met with skepticism in the crypto community, it gained traction among financial institutions, including Goldman Sachs and banks in India and the Middle East.
In June 2023, Kinexys expanded to support euro-denominated payments, achieving $1 billion in daily transactions by October. By November 2023, daily transaction volumes had doubled to $2 billion.
On November 6, Kinexys rebranded and announced integration with JPMorgan FX Services for onchain foreign exchange settlements, starting with the US dollar and euro. The same day, it published a white paper on enterprise privacy, identity, and composability.
Mastercard’s MTN Progress
Mastercard’s MTN began testing in June 2023, with its first live trial in May 2024 in collaboration with Standard Chartered Bank Hong Kong. The test focused on tokenizing carbon credits within Hong Kong’s Fintech Supervisory Sandbox. MTN has also explored wrapped central bank digital currencies with the Reserve Bank of Australia.
This partnership represents a significant step forward in blockchain-driven financial innovation, leveraging both companies’ expertise to redefine the future of cross-border payments.
