As a seasoned crypto investor with a knack for spotting trends and understanding the intricacies of this rapidly evolving industry, I find the collaboration between Mastercard and JPMorgan truly intriguing. The integration of their respective platforms, MTN and Kinexys Digital Payments, promises to streamline cross-border transactions, a challenge that has long plagued businesses worldwide.
Mastercard and JPMorgan have teamed up to create a new cross-border business-to-business payment solution. From now on, customers who use both Mastercard’s Multi-Token Network (MTN) and JPMorgan’s Kinexys Digital Payments can process transactions via a unified single application programming interface (API).
MTN connects with Kinexys
With the collaboration between MTN and Kinexys, MTN’s users can expect improved payment accessibility, minimizing delays caused by time zone differences, boosting transaction clarity, and expediting settlement processes.
As a crypto investor, I appreciate the added value that commercial transaction venues bring, thanks to their ability to seamlessly connect with traditional banking systems through commercial bank payment rails. This integration allows any digital marketplace or platform to work effortlessly with these systems, as explained by Naveen Mallela, co-head of Kinexys by J.P. Morgan, in a statement.
MTN provides a collection of blockchain-centric instruments leveraging Kinexys Digital Payments’ instant transfer network. According to Raj Dhamodharan, Mastercard’s senior vice president for blockchain and digital currencies, this is how these tools work.
“For years, both Mastercard and Kinexys by J.P. Morgan have been committed to innovating for the future of digital asset and commercial infrastructure. […] We are excited about this integration and the new use cases it will bring to life.”
Kinexys has big plans
Kinexys Digital Payments, previously known as Onyx, debuted in 2020 and is the first bank-based blockchain system backed by the dollar-equivalent JPM Coin. It was specifically developed for international money transfers. The coin initially sparked controversy within the crypto community, but it quickly gained traction among financial institutions.
Goldman Sachs pioneered the use of JPM Coin, with central and commercial banks in India and the Middle East adopting it shortly after. By June 2023, the platform had expanded to handle euro-denominated payments, and by October of that year, daily transactions reached $1 billion. According to JPMorgan, this amount has since grown to $2 billion on a daily basis.
It was announced on November 6 that Onyx has rebranded to Kinexys. Simultaneously, JPMorgan revealed its intention to incorporate Kinexys into its own JPMorgan FX Services platform. This integration aims to facilitate on-chain settlements for foreign exchange transactions, initially focusing on the US dollar and euro.
On November 6th, Kinexys unveiled a research document exploring the practicality of their on-chain enterprise privacy, identity, and compatibility concept.
In June 2023, Mastercard unveiled plans to commence trials of its MTN (Multi-Tiered Network). The first live trial took place in May 2024, where Mastercard and Standard Chartered Bank Hong Kong executed a proof-of-concept pilot. This pilot aimed at tokenizing carbon credits within the financial sandbox supervised by the Hong Kong Monetary Authority.
Previously, MTN experimented with the application of digitally wrapped central bank currencies, in collaboration with the Reserve Bank of Australia.
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2024-11-21 20:43