Mastercard is collaborating with major U.S. banks to create distributed ledger technology for banking transactions, employing tokenization. According to a recent press release, a joint effort will be made to evaluate a shared ledger system called the Regulated Settlement Network (RSN), with the goal of enhancing the effectiveness of international payments and minimizing the risk of mistakes and fraud.
“As blockchain technology continues to mature, it will be critical for public and private organizations to partner closely to explore how it can be applied to solve for real-world pain points and improve efficiencies.”
~ Raj Dhamodharan, Executive Vice President, Blockchain and Digital Assets at Mastercard
Ten major banks, including Citi, JPMorgan, Mastercard, Swift, TD Bank, U.S. Bank, USDF, Wells Fargo, Visa, and Zions Bancorp, are participating in the testing of this new technology.
Additionally, six other project participants, including the non-profit MITER Corporation, BNY Mellon, Broadridge, DTCC, ISDA, and Tassat Group, will provide expertise in this area.
This technology enables the collective settlement of tokenized assets like Treasury bonds, investment-grade debt instruments, and commercial bank money. Unlike existing technologies, RSN allows for settlement on a single platform by converting various assets into tokens and placing them on a distributed ledger.
Mastercard has solidified its position as a key player in the advancement of blockchain technologies. In March, MetaMask, a multi-chain wallet, started testing an on-chain card integrated with the Mastercard network.
This collaboration brings together two industry giants: a crypto wallet with over 30 million active users per month and a global leader in traditional financial payment systems, known for its widespread use of credit and debit cards.
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