Mastercard Reveals Plans To Launch Its Multi-Token Network (MTN)
Milestone Date: June 28, 2023
Payment processing giant Mastercard announced it will roll out a beta version of its Multi-Token Network (MTN) this summer in the United Kingdom. The MTN will “act as a testbed for developing live pilot applications and use cases with financial institutions, fintechs, and central banks,” according to Raj Dhamodharan, Mastercard’s Executive Vice President, Blockchain and Digital Assets.
The strategy involves expanding MTN to additional global markets, subject to working with more partners (and likely subject to emerging geo-specific regulations). The primary goal is to attract developers to build on Mastercard's permissioned blockchain, which is built on Ethereum and is a transformative force for its payments capabilities.
To achieve this, Mastercard is inviting teams to participate in the “MTN Innovation Sprint.” Selected teams will gain access to the MTN's capabilities and start developing on the platform.
“MTN represents one of Mastercard’s most ambitious projects in the digital asset space to date,” said Dhamodharan. “It is a natural evolution that demonstrates Mastercard’s commitment to offering a wider range of payment solutions that are safe, easy to access, and always on. Our goal is to support the wider digital asset industry and interested parties to help fortify confidence in its future.”
Earlier this month, under the heading “Mastercard Crypto Credential,” Mastercard filed a trademark application with the United States Patent and Trademark Office (USPTO) that, among other things, covers the transfer of digital assets between financial institutions, or what the credit card giant referred to as virtual asset service providers (VASPs).
Via email, a spokesperson for Mastercard told Blockchain Journal that Mastercard’s Crypto Credential service is intended to serve as both a facet of Mastercard’s Multi-Token Network as well as a stand-alone service that’s available to customers of the company’s global financial services network. Furthermore, the Crypto Credential technology lives at the core of one of MTN’s four so-called “pillars of trust”; trust in counterparty. According to the same spokesperson, MTN’s three other pillars of trust – trust in technology, digital payment assets, and consumer protections – are not yet similarly aligned to an officially branded service. But taken together, the four pillars do adhere to the principles that Mastercard introduced in 2019 as a way to guide its efforts in the blockchain industry.
By Elizabeth Morrison
Published:June 28, 2023