Mastercard and J.P. Morgan have collaborated to enhance global cross-border payment systems using blockchain technology, according to a press release issued on Thursday.
The partnership integrates Mastercard’s Multi-Token Network (MTN) with J.P. Morgan’s Kinexys Digital Payments platform to streamline international transactions for businesses.
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.
Although these CBDCs have yet to go live, the tests demonstrated the potential of tokenized financial instruments.
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.
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