- Mastercard and JP Morgan are collaborating to enhance B2B cross-border payments by providing faster settlement and more transparency.
- Mastercard’s multi-token network will integrate with JP Morgan’s Kinexys Digital Payments (formerly called Onyx) to power cross-border payments.
Mastercard and JP Morgan are collaborating to provide faster, more transparent cross-border payments to their customers. The service is powered by integrating Mastercard’s multi-token network (MTN) and JP Morgan’s recently rebranded digital payments network, Kinexys (formerly Onyx).
In a statement, the Executive Vice President, Blockchain and Digital Assets at Mastercard, Raj Dhamodharan, said, “By bringing together the power and connectivity of Mastercard’s MTN with Kinexys Digital Payments, we are unlocking greater speed and settlement capabilities for the entire value chain. We are excited about this integration and the new use cases it will bring to life, leveraging the strengths and innovations of both organizations.”
A wider push for tokenisation
Mastercard’s multi-token network is a blockchain-based network for tokenised bank deposits, stablecoins, and CBDCs. The global payments company piloted the network in June 2023 by inviting UK banks to test tokenised deposits.
Meanwhile, JP Morgan’s Kinexys is a payment platform that allows for tokenising real-world assets, facilitates digital payments, and enables cross-border payments.
The rise of these networks and platforms from both major financial companies is emblematic of a wider industrial push for blockchain-based financial systems with multi-asset support, fast transaction speeds and settlement times, and strong compliance and AML capabilities.
With Mastercard’s MTN, banks can access 24/7 real-time interbank settlement powered by Mastercard’s private blockchain network. Other market players can also simplify processes like buying carbon credits and unifying financial and compliance standards.
The network also settles transactions on public blockchains, private bank payment networks, and legacy settlement infrastructure.
Mastercard and JP Morgan are not the only institutions building towards a tokenised on-chain future. Chainlink, a leading blockchain oracle provider, launched CCIP, the cross-chain interoperability protocol in July 2023 to connect private and public blockchains, and invited financial institutions like HSBC and the SWIFT network to participate in successful pilots.
Meanwhile, the Kinexys digital payments network has processed more than $1.5 trillion in transactions since its pilot in 2020 and currently processes more than $2 billion in daily transactions.
The post Mastercard and JP Morgan Team up to Enhance Cross Boarder Payments appeared first on CoinJournal.
