Mastercard, a leading global payment processor, announced on Wednesday its ambitious plans to launch a test version of the Multi-Token Network (MTN) this summer. The move forms a part of the firm’s intensified thrust into the blockchain space, inviting developers to leverage the company’s permissioned blockchain infrastructure.
The initial beta launch of MTN is scheduled in the United Kingdom. According to Raj Dhamodharan, Mastercard’s head of crypto and blockchain products, the aim is to extend MTN to more global markets, subject to gaining more partners. Also, recently Mastercard filing a new trademark application that solidifies its commitment to blockchain technology and cryptocurrencies.
MTN is expected to serve as an experimental sandbox for crafting live pilot applications, fostering collaboration with financial institutions, fintech firms, and central banks. By driving the adoption of Mastercard’s blockchain, the company aims to radically alter its payment capabilities.
In an effort to kick-start this process, Mastercard has initiated an ‘MTN Innovation Sprint,’ inviting potential teams to apply. Selected teams will gain access to MTN’s functionalities and start developing on the innovative platform.
A crucial facet of the platform is its underpinning by Mastercard’s permissioned blockchain, constructed on Ethereum. This unique infrastructure is designed to encourage developers to design applications that take advantage of the secure, scalable, and flexible nature of blockchain technology.
An interesting aspect of these applications is their power source – tokenized bank deposits. Dhamodharan pointed out the increasing popularity of tokenized deposits among central banks and commercial entities like JPMorgan Chase.
Mastercard plans to use its proprietary Mastercard Crypto Credential tool in the new Multi-Token Network (MTN) to verify transactions and reduce the risk of unintended transfers. The company is placing a high emphasis on the security of token and asset transfers, following recent significant digital asset hacks.
Mastercard has also partnered with multiple crypto exchanges, such as Binance, Bit2Me, Bitso, and Bybit, enabling the use of digital assets through debit or prepaid cards.
