MasterCard and JP Morgan team up to improve cross-board payments

MasterCard and JP Morgan are collaborating to improve B2B cross-border payments with faster settlements and greater transparency. MasterCard's multi-token network will integrate with JP Morgan's Kinexys Digital Payments (formerly Onyx) to enable cross-border payments.

MasterCard and JP Morgan are teaming up to offer customers faster and more transparent cross-border payments. The service is powered by the integration of Mastercard's Multi-Token Network (MTN) and JP Morgan's recently converted digital payment network Kinex (formerly Onyx).

In a statement, MasterCard's CEO, Blockchain & Digital Assets, MasterCard's Raj Damodharan said, “Combining 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 merger and the new use cases it will bring to life using the strengths and innovations of both organizations.

A broader push for tokenization

The MasterCard Multi-Token Network is a blockchain-based network for tokenized bank deposits, stablecoins and CDCCs. The global payments company invited UK banks to trial the network in June 2023 for deposits.

Meanwhile, JP Morgan's Kinexys is a payments platform that can tokenize real-world assets, facilitate digital payments and enable cross-border payments.

The rise of these networks and platforms from both major financial companies is indicative of the broader industry push for blockchain-based financial systems to support multi-assets, faster transaction speeds and settlement times, and stronger compliance and AML capabilities.

With MasterCard MTN, banks can access 24/7 real-time interbank payments powered by MasterCard's private blockchain network. Other market players can simplify processes such as purchasing carbon credits and unifying financial and compliance standards.

The network will settle transactions on public blockchains, private banking payment networks and pre-settlement infrastructure.

MasterCard and JP Morgan aren't the only institutions building a future on the chain. Chainlink, a leading blockchain oracle provider, announced CCIP as its Internet Operating Protocol to connect private and public blockchains in July 2023, and invited financial institutions such as HSBC and SWIFT networks to participate in successful pilots.

Meanwhile, the Kinnexis digital payments network has processed more than $1.5 trillion in transactions since its pilot launch in 2020 and is currently processing more than $2 billion in daily transactions.