Launching the Multi-Token Network (MTN) offering shows Mastercard’s commitment to digital assets and blockchain.
The product’s four pillars of trust—in counterparty, digital payment assets, technology, and consumer protections—are designed to address the industry’s most pressing concerns.
Mastercard, a leader in the global payments industry, has spent many years perfecting the guidelines by which its card network operates, creating a shared environment for its customers.
The MTN will use this knowledge to develop a standardised framework for regulatory compliance that places a premium on robust consumer safeguards and consistent service.
In addition, the MTN will use Mastercard’s Crypto Credential, which provides a standardised framework for establishing trust in blockchain-based exchanges between customers and merchants.
It will aid in developing scalable blockchain networks and interoperability across them and using regulated payment tokens to power financial applications.
Tokenized bank deposits will initially fuel the apps, with future expansion into more global markets planned.
Payment tokens on the MTN network are reliable, controlled, and scalable, making them ideal for international transactions. As a result, this will be a more time- and money-saving alternative to existing financial transfer methods.
The identity management and permissions that the MTN might give would make it possible for consumers and companies to engage securely through blockchain networks. Fraud can be reduced, security can be bolstered, and identity can be verified more easily and quickly, all thanks to digital identity verification.
The MTN may also find usage in supply chain management in transaction tracking and administration. As a result, logistics can be optimised, prices can be cut, and more people will have a clearer picture of what’s happening in the supply chain.
MTN may also find use in the tokenization of assets. Tokenized securities might be issued and traded using this technology, giving investors more options. This would help level the playing field for people and small enterprises seeking investment capital.
Finally, the MTN might be used to safeguard transactions in CBDC issued by central banks. Mastercard’s recent collaboration with the Reserve Bank of Australia (RBA) on its CBDC pilot showed that it could guarantee the safety, openness, and conformity of CBDC transactions with applicable laws and regulations.
The MTN is a huge step forward for the blockchain and digital asset industries since it provides a safe, scalable, and interoperable platform for streamlined financial and commercial transactions.
New applications will undoubtedly surface as Mastercard continues to refine the product, opening up even more doors for blockchain and digital assets.
