Mastercard has teamed up with JPMorgan to enhance their foreign exchange services for businesses. This partnership aims to provide more transparency, faster settlement, and reduce time zone issues in cross-border payments for B2B transactions.
The collaboration involves integrating Mastercard’s Multi-Token Network (MTN) with JPMorgan’s Kinexys Digital Payments. By combining these two platforms, customers of both Mastercard and JPMorgan will be able to settle B2B transactions using a single API.
The use of blockchain technology for tokenized foreign exchange is gaining popularity in the financial industry as it offers real-time and seamless cross-border payment solutions. JPMorgan, previously known for JPM Coin, has rebranded its digital assets business to Kinexys Digital Payments and plans to introduce tokenized U.S. dollar and euro FX in early 2025, with the potential to expand to other currencies in the future.
Projects like the Monetary Authority of Singapore’s Project Guardian, in which JPMorgan is involved, are also exploring the tokenization of FX payments to improve efficiency and reduce barriers in global transactions.
Both Mastercard and JPMorgan expressed enthusiasm about the partnership, highlighting the benefits of combining their technologies to enhance speed and settlement capabilities in the value chain. Naveen Mallela, co-head of Kinexys by J.P. Morgan, believes that their solutions can revolutionize digital global commerce by integrating commercial bank payment rails with digital marketplaces seamlessly.
Raj Dhamodharan, executive vice president of Blockchain and Digital Assets at Mastercard, emphasized the potential of integrating Mastercard’s MTN with Kinexys Digital Payments to unlock new use cases and bring innovation to the industry. The collaboration between these two major players in the financial sector is expected to drive significant advancements in B2B cross-border payments and streamline processes for businesses around the world.