In a significant move for the financial technology sector, Mastercard and JPMorgan have jointly introduced a new blockchain-based solution designed to streamline business-to-business (B2B) cross-border payments. By integrating Mastercard’s Multi-Token Network (MTN) with JPMorgan’s Kinexys Digital Payments platform, the initiative aims to enhance the speed, transparency, and efficiency of international transactions.
This collaboration reflects a growing trend among major financial institutions to leverage distributed ledger technology to modernize global payment infrastructures.
How the Integrated Payment System Works
The integration allows clients to process cross-border transactions through a single API connection. This approach eliminates traditional barriers such as time zone differences and reduces settlement times significantly. More importantly, it offers greater transparency across the entire payment lifecycle.
Raj Dhamodharan, Executive Vice President of Blockchain and Digital Assets at Mastercard, emphasized that this effort is part of a long-term strategy to build reliable and scalable commercial digital infrastructure. The MTN provides blockchain-based tools that utilize the established payment rails of Kinexys, enabling real-time fund transfers.
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This partnership not only simplifies transactional workflows but also paves the way for broader adoption of blockchain across digital marketplaces and commercial platforms.
The Evolution of Kinexys: From Onyx to a Global Leader
Originally launched by JPMorgan in 2020 under the name Onyx, Kinexys was one of the first bank-led blockchain platforms. It leverages JPM Coin, a dollar-denominated stablecoin, to facilitate secure and efficient cross-border currency movements.
Since its inception, the platform has experienced remarkable growth. It currently processes around $2 billion in daily transactions and has become a foundational element in global payments. In June 2023, the platform expanded its support to include euro transactions, attracting interest from major institutions such as Goldman Sachs, as well as central and commercial banks across India and the Middle East.
The rebranding to Kinexys in November 2024 marked a new phase in its development. The platform now offers on-chain foreign exchange settlements for both US dollars and euros, reinforcing its position as a leading solution in blockchain-based global payments.
Understanding Mastercard’s Multi-Token Network (MTN)
Mastercard launched the MTN to offer blockchain-powered solutions for commercial transactions. In 2024, the network successfully tested a carbon credit tokenization concept in collaboration with Standard Chartered Bank in Hong Kong. It has also been involved in experiments with wrapped central bank digital currencies (CBDCs) alongside the Reserve Bank of Australia.
Designed for flexibility, the MTN supports various use cases including green finance and international payments. Its integration with Kinexys illustrates how blockchain technology is being woven into the fabric of traditional finance.
This partnership underscores a shared commitment to innovation and highlights the potential of blockchain to drive meaningful improvements in the global payments ecosystem.
Frequently Asked Questions
What is the goal of the Mastercard and JPMorgan collaboration?
The partnership aims to create a seamless, efficient, and transparent cross-border payment solution for businesses by integrating Mastercard’s Multi-Token Network with JPMorgan’s Kinexys platform.
How does blockchain improve cross-border payments?
Blockchain technology enhances cross-border transactions by enabling near-instant settlement, reducing intermediary costs, increasing transparency, and operating beyond traditional banking hours.
What is JPM Coin?
JPM Coin is a digital stablecoin issued by JPMorgan that is pegged to the US dollar. It is used within the Kinexys platform to facilitate secure and rapid transfer of value across borders.
Can other currencies besides the US dollar be used?
Yes. The Kinexys platform supports both US dollar and euro transactions, with potential for further currency expansion in the future.
Is this solution available to all businesses?
Currently, the integrated solution is targeted at institutional clients and businesses engaged in high-volume international transactions. Accessibility for smaller businesses may evolve as the technology matures.
How does this impact traditional banking?
This initiative represents a modernization of traditional banking infrastructure, introducing greater efficiency and new capabilities without completely displacing existing systems.