Mastercard and JPMorgan have teamed up to enhance business-to-business (B2B) transactions. The partnership integrates Mastercard’s Multi-Token Network (MTN) with JPMorgan’s Kinexys Digital Payments, enabling mutual customers to settle payments seamlessly via a single API.
The collaboration seeks to address key industry challenges such as “time zone friction,” enhance transparency, and accelerate settlement speeds, according to the companies.
A Unified Vision for Payment Infrastructure
Kinexys by JPMorgan co-head Naveen Mallela highlighted the importance of combining digital marketplaces with robust payment systems. “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,” Mallela stated.
MTN, Mastercard’s blockchain-based platform, will leverage Kinexys Digital Payments’ real-time transfer capabilities to support a broader suite of blockchain-enabled tools. Raj Dhamodharan, Mastercard’s executive vice president of blockchain and digital assets, expressed enthusiasm for the initiative, saying, “We are excited about this integration and the new use cases it will bring to life.”
Kinexys’ Evolution: From Onyx to a Global Payments Powerhouse
Originally launched in 2020 as Onyx, Kinexys was the first blockchain platform introduced by a major bank and powered by JPM Coin, a dollar-pegged stablecoin. Initially met with scepticism by the crypto community, JPM Coin quickly gained traction among financial institutions, including Goldman Sachs and banks in India and the Middle East.
The platform expanded to support euro-denominated payments in mid-2023, achieving $1 billion in daily transactions by October. That figure has since doubled to $2 billion daily, underscoring its growing adoption.
Earlier this month, JPMorgan announced Onyx’s rebranding to Kinexys and unveiled plans to integrate the platform with JPMorgan FX Services for onchain foreign exchange settlements. The first currencies to be included are the US dollar and euro. On November 6, Kinexys also released a white paper outlining a proof-of-concept for onchain enterprise privacy, identity, and composability.
Mastercard’s Multi-Token Network: A Rising Player in Blockchain Innovation
Mastercard’s Multi-Token Network has also been making strides in blockchain development. MTN’s first live test took place in May 2024, in collaboration with Standard Chartered Bank Hong Kong, during a pilot program that tokenized carbon credits within the Hong Kong Monetary Authority’s Fintech Supervisory Sandbox.
Earlier trials included experiments with wrapped central bank digital currencies (CBDCs) alongside the Reserve Bank of Australia. The platform’s integration with Kinexys is expected to further accelerate its adoption in global financial markets.
