Mastercard, J.P. Morgan Join Forces for Seamless Global Blockchain Payments

Blockchain JPMorgan mastercard

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Veronika Rinecker

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Veronika Rinecker

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Veronika Rinecker is based in Germany, studied international journalism and media management. She specializes in politics and regulation, energy, blockchain, and fintech. Since 2017, she has been...

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November 21, 2024 16:55 EST

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Mastercard and J.P. Morgan have joined forces to optimize cross-border payments using blockchain technology.

By integrating Mastercard’s Multi-Token Network (MTN) with J.P. Morgan’s Kinexys Digital Payments (formerly known as JPM Coin), the two financial giants aim to streamline international transactions, the companies said in a press release from. Nov. 21.

Mastercard and J.P. Morgan: Faster Blockchain Payments

Mastercard’s MTN is a blockchain-based platform that facilitates the creation, issuance, and redemption of digital assets. It incorporates a suite of tools and standards offered via API integrations.

By connecting MTN to Kinexys Digital Payments – a payment rail that uses commercial bank money for real-time transfers – the two companies seek to improve transparency, accelerate settlements, and address time zone challenges in cross-border payments.

This integration enables mutual customers of MTN and Kinexys to settle B2B transactions through a single API, simplifying the process and making it more efficient for businesses across the globe.

Mastercard’s Blockchain Innovations with MTN

Mastercard launched the MTN platform in June 2023, building on its private blockchain infrastructure.

Trials involving wrapped central bank digital currencies (CBDCs) were conducted in collaboration with the Reserve Bank of Australia and the Hong Kong Monetary Authority (HKMA) in August 2023. However, neither of these CBDCs is live yet.

In May 2024, Mastercard and Standard Chartered Bank Hong Kong (SCBHK) conducted a live proof-of-concept (PoC) using MTN to tokenize carbon credits within the HKMA Fintech Supervisory Sandbox.

The project involved a Mox Bank client depositing funds to purchase a carbon credit.

Mox requested SCBHK to tokenize the credit through Libeara, a tokenization service provider. Using MTN, the deposit was tokenized, and an atomic swap – a real-time transaction across blockchains – was successfully executed.

That same month, Mastercard expanded its blockchain initiatives, collaborating with major financial institutions, including Swift, Citigroup, Visa, and J.P. Morgan, to explore distributed ledger technology (DLT) for tokenized banking settlements.