Mastercard and JPMorgan have connected their blockchain platforms to enhance cross-border B2B payments, promising more transparency and shorter transaction processing times.
On November 21, Mastercard and JPMorgan announced a partnership to integrate Mastercard's Multi-Token Network (MTN) with JPMorgan's digital asset platform Kinexys (formerly Onyx).
This collaboration aims to optimize cross-border business-to-business (B2B) payments, promising increased transparency, reduced processing times, and minimized time zone conflicts.
Integrating blockchain technology aimed at efficient payments
From mid-2023, Mastercard has launched a pilot program for the Multi-Token Network (MTN) with several banks, focusing on the application of digital bank deposits, stablecoins, and central bank digital currencies (CBDCs). The integration of MTN with Kinexys Digital Payments, previously JPM Coin of JPMorgan, allows shared customers of the two platforms to conduct B2B transactions through a single application programming interface (API). This move is expected to simplify the payment process and enhance operational efficiency for businesses.
Mr. Raj Dhamodharan, Executive Vice President of Blockchain and Digital Assets at Mastercard, emphasized that this combination will open up the possibility of faster processing and payments for the entire value chain. He also expressed his expectations for new applications that this collaboration will bring, leveraging the strengths and innovations from both organizations.
Regarding JPMorgan, Mr. Naveen Mallela, co-lead of Kinexys, believes that Kinexys's solutions can play a transformative role in the global digital commerce ecosystem. The direct integration of the commercial bank's payment pathways with any marketplace or digital platform is seen as the key to this transformation.
The recent renaming of Onyx to Kinexys by JPMorgan reflects a strategy focused on the tokenization of real assets. The bank also plans to integrate online foreign exchange (FX) trading features into Kinexys from Q1 2025. This aims to automate the process of multi-currency payments almost in real-time, operating continuously 24/7.
In addition, JPMorgan is also involved in other tokenization projects for FX payments, notably the Project Guardian of the Monetary Authority of Singapore (MAS), demonstrating the bank's strong commitment to applying blockchain technology in the financial sector.