Mastercard and JPMorgan have partnered to create an innovative cross-border business-to-business payment solution. This collaboration integrates Mastercard’s Multi-Token Network (MTN) with JPMorgan’s Kinexys Digital Payments, enabling seamless transactions through a single API.
Key Benefits of the Integration
- Enhanced Payment Availability: Reduces time zone friction for global transactions.
- Improved Transparency: Blockchain technology ensures real-time tracking.
- Faster Settlements: Streamlines cross-border payments for enterprises.
According to Naveen Mallela, co-head of Kinexys by JPMorgan, the integration strengthens commercial transaction venues by natively embedding bank payment rails into digital platforms.
👉 Explore how blockchain transforms payments
Kinexys Digital Payments: Evolution and Milestones
Originally launched as Onyx in 2020, JPMorgan’s platform leverages its JPM Coin for cross-border transfers. Key developments include:
- June 2023: Expanded support for euro-denominated payments.
- October 2023: Reached $1 billion daily transactions**; now doubled to **$2 billion.
- November 2023: Rebranded to Kinexys, with plans to integrate on-chain FX settlements (USD/EUR).
Mastercard’s Multi-Token Network (MTN)
MTN, a blockchain-based payment solution, aims to:
- Pilot tokenized carbon credits with Standard Chartered Bank Hong Kong (May 2024).
- Explore wrapped CBDCs with the Reserve Bank of Australia.
| Feature | Details |
|---------|---------|
| Blockchain Integration | Streamlines cross-border payments via distributed ledger technology |
| API Simplicity | Single API connects MTN and Kinexys |
| Currency Support | USD and EUR for FX settlements |
| Commercial Rails | Bridges traditional banking with digital asset infrastructures |
Why This Partnership Matters
This collaboration addresses critical pain points in global payments:
- Speed: Real-time transfers minimize delays.
- Scalability: Blockchain enables growth without compromising security.
- Innovation: Opens doors for digital asset use cases in marketplaces.
👉 Discover the future of finance
FAQs
Q: How does blockchain improve cross-border payments?
A: By eliminating intermediaries, reducing costs, and enabling 24/7 settlements.
Q: What currencies are supported initially?
A: USD and EUR, with plans to expand.
Q: Is this solution available to small businesses?
A: Yes, the API integration is designed for enterprises of all sizes.
Q: How secure are these transactions?
A: Blockchain’s immutable ledger ensures tamper-proof records.
The Future of Global Payments
The Mastercard-JPMorgan partnership signals a broader shift toward blockchain adoption in finance. As demand for efficient, transparent payments grows, such integrations will likely become industry standards.
By merging traditional banking reliability with blockchain innovation, this initiative paves the way for a more interconnected financial ecosystem.
Featured image credit: DALL-E by ChatGPT
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