By Bitcoinist - 9 months ago - Reading Time: 3 minutes
Mastercard Goes All-In On Crypto: Imminent Launch Of ‘Multi Token Network’ Product
Mastercard is set to launch its Multi-Token Network (MTN) product, signaling the company’s increasing focus on digital assets and blockchain technologies.
Per the announcement, the MTN aims to make transactions within the digital asset and blockchain ecosystems secure, scalable, and interoperable, providing a set of foundational capabilities for efficient payment and commerce applications.
Mastercard Takes A Big Step Into The Crypto World
The product has four pillars of trust that aim to meet four key industry needs: trust in counterparty, trust in digital payment assets, trust in technology, and trust in consumer protections.
As a trusted global payments company, Mastercard has years of experience developing standards and rules for its card network to provide a common framework for a community of users with shared interests.
The MTN will draw on this experience to provide a common framework for regulatory compliance, prioritizing strong consumer protections and stability. This includes clear rules of the road for compliance with regulatory requirements, such as anti-money laundering (AML) and know-your-customer (KYC) regulations.
In addition, the MTN will leverage Mastercard’s Crypto Credential, which offers a set of common verification standards and infrastructure, enabling trusted interactions among consumers and businesses using blockchain networks.
It will also support and complement efforts to enable regulated payment tokens to power financial applications and offer scalability of blockchain networks and interoperability among them.
The beta version of the MTN will be available in the U.K. this summer, acting as a testbed for developing live pilot applications and use cases with financial institutions, fintech, and central banks.
The first phase of the applications will be powered by tokenized bank deposits, with plans to make the MTN available in additional markets around the world over time.
Mastercard’s Multi-Token Network represents one of the company’s most ambitious projects in the digital asset space to date. However, what are the potential use cases for investors with this new product?
Mastercard’s Multi-Token Network Use CasesOne of the major applications of MTN is in facilitating cross-border payments by using stable, regulated, and scalable payment tokens. This will provide a more efficient and cost-effective alternative to traditional payment systems, improving transaction times and reducing foreign exchange costs.
The MTN also has the potential to provide effective identity management and permissions, enabling trusted interactions among consumers and businesses using blockchain networks. Digital identity verification will help in preventing fraud, improve security, and make it easier to verify identities securely.
Another potential application of the MTN is in supply chain management, where it can be used to track and manage supply chain transactions. This will help provide greater transparency and efficiency in the movement of goods and services, thereby reducing costs, improving logistics, and providing greater visibility into the supply chain.
Tokenized securities are another area where MTN could prove useful. It could enable the issuance and trading of tokenized securities, providing greater liquidity and accessibility to investors. This will help democratize access to investments and provide greater opportunities for individuals and small businesses.
Finally, the MTN could be used to secure Central Bank Digital Currency (CBDC) transactions. As demonstrated in Mastercard’s recent work with the Reserve Bank of Australia (RBA) on its CBDC pilot, it could ensure that CBDC transactions are secure, transparent, and compliant with regulatory requirements.
Overall, the MTN represents a significant advancement in the digital asset and blockchain ecosystems, providing a secure, scalable, and interoperable solution for efficient payment and commerce applications.
As Mastercard continues to develop the product, new use cases will likely emerge, further expanding the possibilities for digital assets and blockchain technology.
Featured image from Unsplash, chart from TradingView.com
Original source: Bitcoinist