Mastercard and JPMorgan: a revolution in payments thanks to blockchain

Mastercard and JPMorgan collaborate to revolutionize global payments with blockchain, integrating the Multi-Token Network system with Kinexys Digital Payments. 

The objective? Greater speed, transparency, and efficiency in cross-border B2B payments.

Let’s see all the details in this article. 

The blockchain integration of Mastercard and JPMorgan promises greater transparency and reduction of operational costs

As anticipated, Mastercard and JPMorgan are joining forces to redefine cross-border payments thanks to blockchain technology.

The Multi-Token Network (MTN) by Mastercard integrates with Kinexys Digital Payments, the recently renamed division of JPMorgan, previously known as JPM Coin.

This partnership aims to transform the landscape of global B2B payments, leveraging the advantages of tokenization for greater efficiency and transparency.

The Multi-Token Network by Mastercard, launched in 2023, was designed to test the use of tokenized bank deposits, stablecoin, and central bank digital currencies (CBDC).

By collaborating with Kinexys, Mastercard aims to offer a system capable of reducing friction in international payments, overcoming barriers related to time zones and accelerating settlement processes.

According to what was stated by the companies, this integration will allow MTN and Kinexys customers to manage B2B transactions through a single API. 

This solution simplifies operations and allows businesses to benefit from a unified system, capable of integrating natively with global digital markets and platforms.

Tokenized foreign currency represents a crucial innovation in the realm of blockchain-based digital assets. This system offers an almost real-time method for managing transactions, eliminating the traditional pain points of cross-border payments.

JPMorgan, through Kinexys, announced that it will introduce tokenized versions of US dollar and euro by the first quarter of 2025, with plans to expand to other currencies.

This initiative is part of a broader context, where projects like Project Guardian, promoted by the Monetary Authority of Singapore, aim to explore the potential of tokenization for global payments.

The advantages of MTN-Kinexys integration

The union between MTN and Kinexys represents a significant step forward for the sector. 

Naveen Mallela, co-head of Kinexys, emphasized how this integration enhances the capabilities of the digital commercial ecosystem, making payment channels more efficient and flexible.

Also Raj Dhamodharan, executive vice president of Blockchain and Digital Assets at Mastercard, stated the following regarding this: 

“This collaboration unlocks new use cases and offers enormous potential to improve the speed and efficiency of the entire value chain in global payments.”

In other words, the integration between Mastercard and JPMorgan demonstrates how traditional finance is increasingly embracing the potential offered by blockchain. 

Through tokenization, the two companies aim to solve structural challenges of international payments, creating a more interconnected and future-oriented ecosystem.

With the promise of significant innovations in the sector, the partnership between MTN and Kinexys represents not just a technological improvement, but a true step forward towards a more fluid, transparent, and sustainable global financial system.