[Mastercard and JP Morgan join forces to bring foreign exchange to the blockchain]
Mastercard and J.P. Morgan have partnered to improve the efficiency of B2B cross-border payments by integrating Mastercard’s Multi-Token Network (MTN) with J.P. Morgan’s Kinexys Digital Payments system, providing greater transparency, faster settlement and reducing time zone friction. Customers from both parties can complete transaction settlement through a single API.
Mastercard’s MTN is based on blockchain and supports tokenized bank deposits, stablecoins and central bank digital currencies (CBDC). JPMorgan Chase renamed its JPM Coin to Kinexys Digital Payments and plans to launch tokenized foreign exchange payment services for U.S. dollars and euros in the first quarter of 2025, and will expand its functionality to other currencies in the future.
Tokenized foreign exchange has attracted the attention of traditional financial institutions because it can achieve instant payment around the clock. The Monetary Authority of Singapore’s Project Guardian is also pushing for FX tokenization, with JPMorgan participating.
Naveen Mallela, co-head of Kinexys, said that this solution will revolutionize global commercial payments, enhance the value of commercial transaction platforms, and achieve seamless integration with the digital market. Raj Dhamodharan, Executive Vice President of Blockchain and Digital Assets at Mastercard, believes that this integration will accelerate transactions and bring new application scenarios, giving full play to the advantages and innovation of both parties.
