Originally published on: November 21, 2024
In an innovative collaboration, Mastercard and JPMorgan have united to launch a cutting-edge business-to-business cross-border payment solution. Through the integration of Mastercard’s Multi-Token Network (MTN) and JPMorgan’s Kinexys Digital Payments, customers can now seamlessly settle transactions via a single application programming interface (API).
The partnership between MTN and Kinexys aims to enhance payment availability, address issues like “time zone friction,” and elevate transparency and settlement speed in transactions.
Naveen Mallela, co-head of Kinexys by JPMorgan, emphasized, “The value proposition of commercial transaction venues is enhanced by the availability of commercial bank payment rails that can natively integrate with any digital marketplace or platform.”
MTN offers a range of blockchain-based tools that leverage Kinexys Digital Payments’ payment rail for instant transfers. Raj Dhamodharan, Executive Vice President of Blockchain and Digital Assets at Mastercard, highlighted the seamless integration of the two platforms.
Kinexys Digital Payments, formerly known as Onyx and launched in 2020, was the pioneering bank-led blockchain platform powered by the JPM Coin. Initially met with skepticism in the crypto community, JPM Coin quickly gained traction among financial institutions, with Goldman Sachs and several central and commercial banks embracing the technology.
Since its inception, Kinexys has expanded to euro-denominated payments and has seen a significant increase in daily transactions volume, now reaching $2 billion daily.
The recent rebranding of Onyx as Kinexys signals a new chapter for the platform. JPMorgan plans to integrate Kinexys with JPMorgan FX Services to facilitate onchain foreign exchange settlements, starting with the US dollar and euro.
Furthermore, Kinexys released a white paper outlining a proof-of-concept of its onchain enterprise privacy, identity, and composability, showcasing the platform’s commitment to innovation.
Mastercard initiated testing of the MTN in June 2023, with the first live test conducted in May 2024 in collaboration with Standard Chartered Bank Hong Kong for a proof-of-concept pilot tokenizing carbon credits within the Hong Kong Monetary Authority Fintech Supervisory Sandbox.
With MTN’s earlier exploration of wrapped central bank digital currencies alongside the Reserve Bank of Australia, the future of blockchain-based payment solutions looks promising.
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