• Mastercard has launched its Multi-Token Network (MTN) platform, a solution to foster interoperability within the blockchain ecosystem.
• MTN will primarily focus on fiat bank deposits as blockchain tokens rather than traditional cryptocurrency tokens.
• The network’s overarching goals of trust and verification indicate its initial focus on semi-traditional financial applications.
Mastercard Launches Multi-Token Network
Global payments processor Mastercard has launched its Multi-Token Network (MTN) platform, a solution to foster interoperability within the blockchain ecosystem. Raj Dhamodharan, the head of crypto and blockchain at Mastercard, expressed the company’s vision for MTN as an essential framework that ensures the security, scalability, and interoperability of transactions within digital asset and blockchain ecosystems.
Focus On Fiat Bank Deposits
While the announcement does not specify which cryptocurrencies will be supported, it does indicate that Mastercard is collaborating with select partners to enable transfers on public blockchains. Interestingly, the initial applications of MTN are not directly related to cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH). The platform’s beta phase, scheduled for launch in the UK this summer, will utilize “tokenized bank deposits”. Furthermore, MTN will also allow using “regulated payment tokens” in financial applications. These references imply that MTN will primarily focus on fiat bank deposits as blockchain tokens rather than traditional cryptocurrency tokens.
Tools For Blockchain Developers
Dhamodharan shed further light on MTN’s capabilities in an interview with Fortune. He likened the platform to an “app store” for blockchain developers, indicating that MTN will provide tools for developers to leverage. However, a public app store for general users was not confirmed. While MTN could support consumer-to-consumer payments, Dhamodharan emphasized that the platform’s potential extends far beyond this functionality. He mentioned that MTN could facilitate payments for non-fungible tokens (NFTs) representing a wide range of assets. This suggests a focus on tokenizing real-world items rather than popular crypto collectibles.
Using Private Version Of Ethereum
Furthermore, Dhamodharan disclosed that MTN would grant access to Mastercard’s private version of Ethereum differentiating it from public Ethereum chain which supports many cryptocurrencies such as Bitcoin and Etheruem etc.. The network’s overarching goals emphasise trust and verification which indicates its initial focus on semi-traditional financial applications such as payments solutions etc..
Mastercard Crypto Credential In April
This announcement follows Mastercard’s earlier introduction of the Mastercard Crypto Credential in April which ensures that financial institutions , governments , brands , and crypto organizations adhere to defined standards when dealing with digital assets .