Mastercard will test asset tokenization with blockchain technology through its Multi-Token Network

Payment giant Mastercard, launched a new solution called Multi-Token Networkdesigned to provide secure, scalable and interoperable transactions within the blockchain ecosystem and digital assetsprovides a platform for various financial institutions around the world to test asset tokenization through the blockchain.

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Asset tokenization with blockchain on the Multi-Token Network

Mastercard Multi-Token Networkthis will serve as a test bench for carry out transactions related to digital assets and tokenized assets with the blockchainthereby facilitating the interaction of these assets within the payment and trading sectors.

Solution directed financial institutions, banks, fintech and cryptocurrency companies, which Mastercard will work with to test and build use cases and applications. The Multi-Token Network will be operational in beta in the UK in Q3 2023said the statement, where is the application for tokenized bank deposits.

As well as, the tokenized asset platform will work using the Mastercard Crypto Credential solutionwhich enables identity management and verification when using the blockchain network for cross-border transactions.

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Multi-Token Network is “a natural evolution demonstrating Mastercard’s commitment to offering a more secure, accessible and always-on payment solution,” explained Raj Dhamodharan, Executive Vice President of Blockchain and Digital Assets at advertisementwhich catalogs the solution as one of Mastercard’s most ambitious forays into the digital asset space Until now.

In general, the platform will start with the field of tokenized bank deposits, where they have some experience, but the solution is expected to be mixed “a stable, regulated and scalable payment token”like stablecoins or stablecoins for financial applications, temporarily blockchain-connected central bank digital currency or CBDC they will also integrate solution use cases.

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Digital assets and blockchain technology will one day become critical infrastructures for storing and transferring value. Mastercard’s Multi-Token Network will make transactions within this ecosystem secure, scalable and interoperable. https://t.co/Vb1JtnSTjx#digital #blockchains… pic.twitter.com/YlH8rHgQQI

— Mastercard News (@MastercardNews) June 28, 2023

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That Token assets are a way of representing physical or digital assets through digital units on the blockchain. This means that assets, such as a piece of property, currency or bank deposit, as Mastercard will explore, can be represented or converted into a digital token issued on a public or private blockchain.

Mastercard has a long history collaborations and initiatives related to the crypto space, blockchain and Web3which allows us to observe the trust payments companies have in technology and the ability of digital assets to be a “critical infrastructure for storing and transferring value”.

Image courtesy: kjpargeter on Freepik

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