New York acquired Matthews in the January 31 trade that sent Kristaps Porzingis to Dallas. He played just two games for the Knicks before parting ways with the team. The 32-year-old appeared in 44 games with the Mavericks before the trade, averaging 13.1 points per night and shooting 38% from 3-point territory.
The Pacers have a pair of roster openings, so no move was needed to add Matthews. Indiana has been looking for backcourt help since star guard Victor Oladipo suffered a season-ending injury last month.