Mastercard will test tokenized deposits
Date: 2023-06-30 Author: Karina Ziganova Categories: BLOCKCHAIN
Payment giant Mastercard will launch pilot tests of the Multi-Token Network (MTN) with tokenized bank deposits.
The company said that MTN will provide a blockchain framework for secure, scalable and interoperable transactions, facilitating more efficient payments and settlements.
"We believe that digital assets and blockchain technologies today are moving on a similar trajectory, once becoming a critical infrastructure for storing and moving value," Mastercard said.
In the summer, Mastercard will launch a beta version of MTN for UK residents. The company claims that it will become a "testing ground for the development of real pilot applications." At the first stage, they will study how applications can use tokenized bank deposits. Over time, MTN's technology will be available in other markets around the world.
Mastercard's Four "Pillars of Trust"
In total, Mastercard named four "pillars of trust" that meet the key needs of the industry.
The first of these is trust in the counterparty. Mastercard will improve identity and permissions management with Mastercard Crypto Credentials. The second involves trust in digital payment assets based on stable and regulated tokens for payment and other financial applications, including deposit platforms.
Mastercard also wants to expand trust in technology, due to the reliability of scalable and interoperable blockchain networks. Moreover, the company will prioritize consumer protection and regulatory compliance.
How Mastercard is mastering Web-3
Tokenized deposits are one of Mastercard's many initiatives in the Web3 space. A few months ago, Web3 payment protocol Immersve and payments giant Mastercard entered into a partnership that will allow cryptocurrency payments to be made in the digital and physical worlds, as well as in the metaverse. Users will now be able to pay with the USD Coin (USDC) stablecoin. They will be converted into fiat for card payments.
In addition, the company has entered into a partnership between Mastercard and Polygon aimed at creating a Web3 incubator to help artists. The program will help aspiring artists by developing the tools and skills necessary to successfully develop and advance their music careers in the digital economy.
