Mastercard is set to launch its Multi-Token Network (MTN), an app store powered by blockchain technology aimed at building regulated financial applications that will benefit the digital asset industry and interested parties. According to Raj Dhamodharan, Mastercard’s head of crypto and blockchain, this project is one of the most ambitious endeavors for Mastercard in the digital asset space.
The primary objective of the Multi-Token Network is to facilitate cross-border payments, making them more efficient and cost-effective compared to traditional payment systems. The aim is to improve transaction times and reduce foreign exchange costs.
Raj Dhamodharan stated, “Today, we are taking the next step on our journey with the introduction of Mastercard Multi-Token Network, a tailor-made solution for the industry.”
Mastercard’s project focuses on four pillars of trust within the digital asset industry: trust in counterparties, trust in customer protection, trust in digital payment assets, and trust in technology. As a globally trusted payment company with extensive experience in developing standards and rules for its card network, Mastercard aims to provide a common framework for a community of users with shared interests.
Drawing from its experience, the MTN will develop a framework for regulatory compliance that prioritizes stability and robust consumer protection. This framework will include clear rules for complying with regulatory requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) standards.
The beta version of the MTN will be available in the UK this summer, offering an opportunity for the creation of real-world pilot projects and use cases with fintech companies, financial institutions, and central banks.
One of the key applications of MTN is identity management and authorization, which facilitates trustworthy interactions between customers and companies using blockchain networks. By incorporating digital identity verification, the system aims to prevent fraud, enhance security, and enable secure identity verification.
Overall, this development in the digital asset and blockchain ecosystem offers a safe, scalable, and transparent solution for effective applications in payments and commerce. As Mastercard continues to develop the product, it will likely lead to more use cases, thereby increasing the potential applications for digital assets and blockchain technology.