Mastercard released a press release on November 21 stating that the firm has linked up its MTN connectivity with JP Morgan’s Kinexys Digital Payments for the transfer of tokenized assets across borders. The company argued that the partnership would provide greater transparency, faster settlement, and reduced time zone friction during transfer payments.
Mastercard’s press release revealed that MTN’s connectivity with Kinexys Digital Payments will allow customers from both firms to settle B2B transactions through a single API.
Mastercard’s MTN seeks to improve B2B cross-border payments
Both companies said in a joint statement that the integration of Mastercard’s MTN’s connectivity with Kinexys Digital Payments will let its customers settle B2B transactions via a single API
Naveen Mallela, co-head of Kinexys by JP Morgan, said in a statement that the company believes the collaboration can transform the ecosystem for digital global commerce and digital assets. Mallela also argued that 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.
“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.”
-Raj Dhamodharan, Executive Vice President, Blockchain and Digital Assets at Mastercard
Dhamodharan also revealed that the firm is excited about the integration and the new use cases it will bring to life. The vice president highlighted that the collaboration will leverage the strengths and innovations of both organizations.
Mastercard aims to test out tokenized bank deposits
The payments giant admitted that it has also invited several banks onto its MTN. The company argued that it wants to test out tokenized bank deposits using stablecoins and central bank digital currencies (CBDC). That’s why the firm’s token network is now joining with JP Morgan’s Kinexys Digital Payments, formerly JPM Coin.
Moreover, JP Morgan rebranded JPM Coin to Kinexys Digital Payments, promising to introduce tokenized U.S. dollar and euro FX by as early as the first quarter of 2025. The bank also rebranded with plans to expand to other currencies in the future. On the other hand, the company is a participant in the Monetary Authority of Singapore’s Project Guardian, which also plans to expand to other currencies.
Both firms also believe that the collaboration is important because tokenized foreign exchange is an attractive subset of the blockchain-based real-world assets trend. In particular, traditional finance is embracing tokenized foreign exchange because it offers a near-real-time, always-on way to avoid cross-border gaps and pain points. For that reason, both companies are confident the partnership will automate payment processes, optimize liquidity, and reduce operational costs.
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