Method and system for net settlement by use of cryptographic promissory notes issued on a blockchain

A method for generating a cryptographic promissory note for posting to a blockchain, comprising:

• receiving, by a receiving device of a processing server, an authorization request for a payment transaction, wherein the authorization request is a transaction message formatted based on one or more standards and includes at least a plurality of data elements including at least a first data element configured to store a blockchain address and a second data element configured to store a transaction amount;
• generating, by a generation module of the processing server, a promissory note, wherein the promissory note includes at least the transaction amount;
• digitally signing, by a signing module of the processing server, the generated promissory note with a private key;
• encrypting, by an encryption module of the processing server, the signed promissory note with a symmetric key;
• wrapping, by the encryption module of the processing server, the symmetric key with at least:
• a public key corresponding to the private key and a public key associated with an acquirer involved in the payment transaction;
• and
• electronically transmitting, by a transmitting device of the processing server, a blockchain transaction to a blockchain network, wherein the blockchain transaction includes at least the encrypted promissory note, each wrapped symmetric key and the blockchain address.