A new project by Mastercard Inc (NYSE: MA), a payment processing giant, aims to create a Multi-Token Network (MTN) that can handle tokenized bank deposits. The company revealed its latest innovation, saying that MTN will launch in beta mode in the UK this summer. Mastercard is not the first to explore the potential of tokenized cash and its applications.
For instance, JPMorgan (NYSE: JPM) introduced its own digital token, JPM, in 2019, which is now accessible to its institutional clients.
MTN, Mastercard’s Latest Experiment
Mastercard is launching a new project, MTN to test the use of tokenized bank deposits. The head of crypto and blockchain at Mastercard, Raj Dhamodharan, said that the project will also explore the potential of stablecoins and CBDCs in the future. He added that some banks and financial institutions have been invited to join the testbed.
Digital asset and blockchain technologies will one day become critical infrastructure for storing and moving value. The Mastercard Multi-Token Network will make transactions within this ecosystem secure, scalable and interoperable. https://t.co/Vb1JtnSTjx#digital #blockchain… pic.twitter.com/YlH8rHgQQI
— Mastercard News (@MastercardNews) June 28, 2023
By tokenizing assets and leveraging the trust and regulation of conventional finance, MTN aims to transform the financial sector. This initiative connects the established banking system with the novel realm of digital currencies.
The implications of this are unclear, but Mastercard’s pioneering efforts indicate a bright future. Will this pilot project spell doom for crypto and bitcoin, or will it pave the way for a new era of cooperation? The answer will be revealed in time.
Mastercard Crypto Credentials is a service that Mastercard launched in April 2023 to enable secure and compliant cross-border transactions between wallets using tokenized bank deposits.
The service verifies the identity of wallets involved in transactions and ensures they meet the standards of the Financial Task Force’s travel rule and the anti-money laundering (AML) regulations. Mastercard partnered with wallet providers Uphold, Lirium, Bit2Me, and Mercado Bitcoin to offer this service.
Mastercard has been growing its global presence and reach through various collaborations and initiatives. In March, the company teamed up with Stables, an Australian fintech company, to facilitate stablecoin payments in the APAC region. This partnership allows Stables users to use USD Coin (USDC) to pay for goods and services at Mastercard-accepting merchants.
Mastercard stock has risen by 0.33% to $381.50 today, after a nearly 18% increase over the last year.
