Mastercard Launches Multi-Token Network to Support Blockchain Interoperability
Global payments processor Mastercard continues to be at the forefront of blockchain technology adoption with the launch of the Mastercard Multi-Token Network (MTN). The MTN solution aims to provide secure, scalable, and interoperable transactions within the blockchain ecosystem. Raj Dhamodharan, Executive Vice President of Digital Asset, Blockchain Products, and Partnerships at Mastercard, expressed their vision for MTN in enabling more efficient payment and commerce applications.
Trust in Counterparty
Dhamodharan emphasized the importance of effective identity management and permissions in building trusted networks. MTN will leverage Mastercard Crypto Credential to establish common verification standards and infrastructure, enabling trusted interactions between consumers and businesses on blockchain networks. This technology has already been used in Mastercard’s work with the Australian central bank digital currency (CBDC) pilot.
Trust in Digital Payment Assets
Mastercard is testing the use of tokenized commercial bank deposits between financial institutions. MTN will complement these efforts by supporting regulated payment tokens to power financial applications. The platform aims to ensure the safe transfer of tokens and assets.
Trust in Technology
Scalability and interoperability are critical technologies for secure transfers on blockchain networks. MTN will offer these capabilities across supported payment tokens and networks in a scalable manner. The Reserve Bank of Australia’s CBDC pilot demonstrated how CBDCs could be used for seamless purchases from allow-listed entities on the public blockchain.
Trust in Consumer Protections
The MTN will provide a common framework for users with shared interests, prioritizing strong consumer protections, stability, and regulatory compliance. Mastercard’s experience in developing standards and rules for their card network will contribute to this framework.
Future Plans
A beta version of MTN will be released in the UK this summer as a testbed for pilot applications. Tokenized bank deposits will be the initial focus, with plans to expand the platform to additional markets worldwide. Mastercard believes that blockchain technologies and tokenization can become critical infrastructure for storing and moving value, and aims to support the wider digital asset industry through MTN.
Additional Initiatives
Mastercard has been actively involved in various blockchain-based initiatives. They have launched ‘Crypto Secure’ and ‘Crypto Source’ to facilitate blockchain-based payments. The company also participated in a New York Fed pilot project exploring the creation of a digital dollar. Additionally, Mastercard partnered with Polygon to launch the Web3-based Mastercard Artist Accelerator program, aimed at connecting artists from around the world with mentors and a dynamic fanbase.
