Mastercard and JPMorgan Connect Digital Payment Platforms for B2B Transactions

TLDR

• Mastercard’s Multi-Token Network (MTN) partners with JPMorgan’s Kinexys Digital Payments for blockchain cross-border payments
• Integration enables mutual customers to settle B2B transactions through single API
• JPMorgan recently rebranded Onyx to Kinexys, focusing on real-world asset tokenization
• Platform aims to provide faster settlement and reduce time zone friction
• FX capabilities planned for Q1 2025 with 24/7 near real-time settlement

In a major development for blockchain-based financial infrastructure, Mastercard and JPMorgan announced a strategic partnership linking their respective digital payment networks.

The collaboration connects Mastercard’s Multi-Token Network (MTN) with JPMorgan’s newly rebranded Kinexys Digital Payments platform, formerly known as JPM Coin.

The partnership, announced on Thursday, aims to streamline business-to-business (B2B) cross-border payments by offering enhanced transparency and faster settlement times. By connecting these two established platforms, the companies seek to eliminate traditional banking hours restrictions and reduce friction caused by different time zones.

Under the new arrangement, mutual customers of both MTN and Kinexys will be able to process their B2B transactions through a single API (Application Programming Interface). This technical integration represents a substantial simplification of the current cross-border payment process, which often involves multiple systems and intermediaries.

Mastercard’s MTN platform, which emerged in mid-2023, has been actively inviting banks to test various digital payment solutions. These include tokenized bank deposits, stablecoins, and central bank digital currencies (CBDCs). The platform’s connection with Kinexys marks a concrete step toward practical implementation of these technologies.

JPMorgan’s decision to rebrand its Onyx blockchain platform to Kinexys comes as part of the bank’s increased focus on real-world asset tokenization. The name change reflects the platform’s evolution and expanding capabilities in the digital asset space.

Naveen Mallela, co-head of Kinexys by J.P. Morgan, emphasized the transformative potential of their solutions in digital global commerce. “Our solutions can play a transformative role in the ecosystem for digital global commerce and digital assets, where 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.

The collaboration received strong support from Mastercard’s executive leadership. Raj Dhamodharan, executive vice president of Blockchain and Digital Assets at Mastercard, highlighted the benefits of combining their networks. “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,” he said.

Looking ahead, Kinexys plans to introduce on-chain foreign exchange capabilities to the platform in the first quarter of 2025. This addition will enable around-the-clock, near real-time multicurrency clearing and settlement, addressing a key pain point in international transactions.

The partnership builds on JPMorgan’s existing involvement in blockchain initiatives. The bank participates in the Monetary Authority of Singapore’s Project Guardian, which explores various applications of digital asset technology in traditional finance.

This collaboration represents a practical implementation of blockchain technology in mainstream financial services. Both companies emphasize the focus on real-world applications rather than speculative use cases.

The integration process has already begun, with both companies working to ensure smooth technical implementation. The unified platform will serve businesses of various sizes, from medium-sized enterprises to large multinational corporations.

Security measures remain a top priority for both organizations. The partnership includes robust protocols to protect customer data and ensure transaction integrity across the combined network.

The companies have established clear technical standards for the integration, ensuring compatibility between their respective systems while maintaining the highest levels of security and reliability.

Customer onboarding processes have been streamlined to facilitate easy adoption of the new integrated service. Both Mastercard and JPMorgan are providing technical support to help clients transition to the unified platform.

The partnership announcement comes at a time when traditional financial institutions are increasingly embracing blockchain technology to improve their service offerings and operational efficiency.