30s Summary

Mastercard is teaming up with JPMorgan’s Kinexys Digital Payments to streamline B2B cross-border transactions. The partnership will leverage Mastercard’s blockchain-based Multi-Token Network (MTN) and JPMorgan’s Kinexys system, allowing companies to settle B2B payments via a single API. Tokenised foreign currency exchange will also be introduced, potentially eliminating cross-border complications. The partnership eyes on enhancing the speed and settlement capabilities across the value chain in global digital commerce and digital assets ecosystem.

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Mastercard has partnered with JPMorgan’s Kinexys Digital Payments with an aim to improve B2B cross border payments. They are promising faster settlements, reduced time zone issues, and increased transparency.

This partnership involves Mastercard’s Multi-Token Network (MTN), a blockchain-based system that deals with tokenized assets, and JPMorgan’s Kinexys (previously known as Onyx). By integrating these, both Mastercard and Kinexys customers can settle their B2B transactions via a single API.

They introduced the MTN in the middle of 2023, extending an invitation to various banks to test out tokenized bank deposits, stablecoins, and central bank digital currencies. Tokenized foreign exchange is appealing as it can prevent cross-border difficulties through a nearly instant, always-on process.

Furthermore, Kinexys Digital Payments has plans to introduce tokenized US dollar and euro FX by early 2025, with intentions to include other currencies too. This service revamping was adopted alongside the brand’s name change from JPM Coin.

The benefits of tokenized foreign exchange have been recognized in traditional finance also, like the Monetary Authority of Singapore’s Project Guardian, which includes JPMorgan as a participant.

According to Naveen Mallela, co-head of Kinexys by J.P. Morgan, their solutions can significantly impact the ecosystem of digital global commerce and digital assets. By relating Mastercard’s MTN with Kinexys Digital Payments, they aim to offer improved speed and settlement capabilities across the value chain. The organization is excited about exploring the new use cases this integration could bring forth.