Mastercard Partners with US Banking Giants to Develop Tokenized Payment Solutions

Mastercard Collaborates with U.S. Banking Giants to Develop Blockchain-Based Payment Technology

Mastercard is teaming up with major U.S. banking institutions to advance distributed ledger technology for banking payments through tokenization.

A recent press release revealed that these companies will test a shared ledger technology called the Regulated Settlement Network (RSN). This project aims to enhance the efficiency of cross-border payments while minimizing errors 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 real-world pain points and improve efficiencies,” stated Raj Dhamodharan, Executive Vice President of Blockchain and Digital Assets at Mastercard.

Ten banking giants are participating in testing this new technology: Citi, JPMorgan, Mastercard, Swift, TD Bank, U.S. Bank, USDF, Wells Fargo, Visa, and Zions Bancorp.

Six other organizations are contributing their expertise, including the non-profit MITER Corporation, BNY Mellon, Broadridge, DTCC, ISDA, and Tassat Group.

The RSN technology facilitates the collective settlement of tokenized assets such as Treasury bonds, investment-grade debt instruments, and commercial bank money. Unlike existing technologies, RSN enables settlement on a single platform by converting various assets into tokens and placing them on a distributed ledger.

Mastercard has long been a key player in the development of blockchain technologies. In March, the multichain wallet MetaMask began testing an on-chain card integrated with the Mastercard network.

This collaboration united two giants in their respective fields: a crypto wallet with over 30 million active users per month and a traditional financial payment system, encompassing credit and debit cards used globally.

Links:

Bitcoin