Mastercard tests tokenization of bank deposits ── Plans to deploy beta version in the UK this summer | CoinDesk JAPAN | CoinDesk Japan

Mastercard has launched a test environment dubbed the Multi-Token Network (MTN). It has begun testing tokenization of bank deposits, with a beta version available in the UK this summer.

Raj Dhamodharan, Head of Crypto Assets & Blockchain at Mastercard, has called on many banks and financial institutions to join, saying that the MTN initiative will eventually become a central bank digital currency (CBDC) or a regulated currency. said it will also support stablecoins.

There are various experiments and projects around the world for cash tokenization and related applications. A typical example is JPMorgan Chase’s digital currency “JPM Coin” for business-to-business payments.

Related article: JPMorgan’s JPM Coin, How the World’s Payments Will Change ──Global Management and Adhesion

“Regulated money in banks is what drives the global economy right now,” Damodaran told CoinDesk.

“So we are starting with the tokenization of bank deposits, which means that money in bank accounts becomes a digital asset on the blockchain, with the same level of programmability as digital currency in the crypto ecosystem. ”

The first applications and use cases the company is pushing with its tokenization of bank deposits are highly interlocking with its blockchain analytics application Mastercard Crypto Credentials, which was announced in April, to ensure that transactions are anti-money laundering ( It can be confirmed that it complies with AML) regulations.

“Suppose a bank in the UK has a tokenized bank deposit. Similarly, if a bank in Singapore also has a tokenized bank deposit, mutual exchange is easy. This transcends value borders. It’s a transfer, and traditionally moving money in a quick and flexible way has had a lot of problems.”

At this summer’s MTN Innovation Sprint in London, teams will work to develop promising use cases leveraging tokenized bank deposits and digital assets, Damodaran said. .

｜Translation: CoinDesk JAPAN
｜Editing: Takayuki Masuda
| Image: Pixabay
｜Original: Mastercard is Piloting Tokenized Bank Deposits in New UK Testbed