Mastercard has just announced a partnership with JPMorgan's Kinexys Digital Payments (formerly Onyx) to implement a tokenized forex transaction solution, using blockchain technology to enhance cross-border B2B payment efficiency.
The Breakthrough Technology Combination
The two companies will integrate Mastercard's Multi-Token Network (MTN) blockchain platform with Kinexys Digital Payments to provide B2B transaction services through a single API. The main goal is:
More transparency in cross-border transactions.
Faster speeds, with near real-time payments.
Minimizing difficulties from time zone differences or geographic distance.
This is a major advancement in the field of tokenized real-world assets (RWA), helping to drive international payments more efficiently.
JPM Coin Plays an Important Role
JPMorgan will use JPM Coin – a blockchain token launched in 2019 – as the focus for trial transactions. Currently, JPM Coin is used for USD payments globally, becoming one of the most popular blockchain solutions among major banks.
In the early stages of the project, JPMorgan plans to issue forex tokenization (FX), starting with USD and EUR in Q1 2025. The project will then expand to other currencies.
Global Competition in FX Tokenization
Forex tokenization is becoming an attractive field, with similar projects like Project Guardian from the Monetary Authority of Singapore (MAS), where JPMorgan is also participating. The involvement of major banks like JPMorgan and Mastercard indicates that blockchain is increasingly playing a significant role in international payments.
High Expectations from Blockchain
This collaboration is not only a testament to the application of blockchain in traditional finance but also opens up a new future for international transactions:
Faster, cheaper payments.
Widespread application of blockchain technology in the banking system.
This project is expected to be a significant boost, driving innovation in the global payment sector.