Mastercard is preparing an experiment with tokenized bank deposits

Mastercard is preparing an experiment with tokenized bank deposits

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Author: Robert Strickland (crypto-journalist)
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Mastercard is preparing an experiment with tokenized bank deposits
Mastercard will test tokenized deposits on its own blockchain network
The company says its network will get a "level of programmability" similar to known crypto-assets

Mastercard will begin pilot testing a Multi-Token Network (MTN) with tokenized bank deposits.
Selected banks and financial institutions will be given access to the MTN functionality to develop possible use cases for tokenized deposits.

Raj Damodaran, head of cryptocurrency and blockchain at Mastercard, expects the initiative to extend to regulated stablecoins and CBDC digital national currencies in the future.

"Today, the catalyst for the movement of the global economy is regulated money in banks. We are starting to create tokenized bank deposits. The unit of money in the bank account acts as a digital asset in the blockchain, providing the same level of programmability as digital currencies in the crypto-ecosystem," he explained in a comment for Coindesk.

In October 2022, Mastercard announced plans to become an intermediary for traditional financial institutions to trade cryptocurrencies. It also announced a Crypto Secure tool to help banks identify and prevent fraudulent transactions going through cryptocurrency exchanges.

Earlier it became known that after September 25, the company Paysafe Payment Solutions will stop supporting payment services in euros for the cryptocurrency exchange Binance. Users of the largest cryptocurrency will have to update bank details and possibly agree to new terms and conditions to continue using SEPA services.

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