Mastercard, a leading global payment processor, announced on Wednesday its plans to launch a test version of the Multi-Token Network (MTN) this summer. The company aims to expand its presence in the blockchain industry by inviting developers to utilize its permissioned blockchain infrastructure.
The initial beta launch of MTN will take place in the United Kingdom. According to Raj Dhamodharan, Mastercard’s head of crypto and blockchain products, the goal is to eventually extend MTN to global markets, pending additional partnerships. Recently, Mastercard filed a new trademark application, reinforcing its commitment to blockchain technology and cryptocurrencies.
MTN is expected to serve as an experimental sandbox for creating live pilot applications. This will encourage collaboration with financial institutions, fintech firms, and central banks. By promoting the adoption of Mastercard’s blockchain technology, the company aims to transform its payment capabilities.
To kick-start this process, Mastercard has introduced the ‘MTN Innovation Sprint,’ inviting potential teams to apply. Selected teams will have access to MTN’s functionalities and can begin developing on the platform.
A key aspect of the platform is its foundation on Mastercard’s permissioned blockchain, built on Ethereum. This infrastructure encourages developers to design applications that leverage the secure, scalable, and flexible nature of blockchain technology.
One interesting feature of these applications is that they are powered by tokenized bank deposits. Dhamodharan highlighted the growing popularity of tokenized deposits among central banks and commercial entities like JPMorgan Chase.
Mastercard plans to utilize its proprietary Mastercard Crypto Credential tool in the new Multi-Token Network (MTN) to verify transactions and minimize the risk of unintended transfers. The company places a strong emphasis on the security of token and asset transfers, particularly in light of recent notable digital asset hacks.
In addition, Mastercard has partnered with multiple crypto exchanges, including Binance, Bit2Me, Bitso, and Bybit. These partnerships enable the use of digital assets through debit or prepaid cards.
Compiled by Coinbold