- The project will be launched in a pilot phase this summer in the UK
- It aims to create a “regulated financial application.”
- Tokenized deposits will be added to the platform initially
- But later, Stablecoins and CBDCs may also be integrated
The Multi-Token Network pilot project will be launched in the UK this summer. The platform is designed for in-depth testing of bank deposit tokenization models, as well as stabelcoins and CBDCs.
The company announcement can be found here. This is how Raj Dhamodharan, head of crypto and blockchain at Mastercard, commented on the initiative:
“The main driver of the global economy today is regulated money in banks.. That’s why we are starting to make tokenized deposits, because each unit of fiat in the account is a digital asset in the blockchain, providing the same level of programmability as cryptocurrency.”
Mastercard invites all interested financial counterparties to participate in the project. All you need to do is to fill in the special form at the link.
The company also does not exclude the possibility that later on MTN will support stabelcoins and CBDC.. Note that Mastercard positioned their project primarily as a “regulated financial application.”
The platform is likely to be connected to the Mastercard Crypto Credentials system. This is a blockchain analytics toolkit to track AML compliance.
Also, in theory, MTN could solve certain difficulties with cross-border transfers. But the full potential of the project is not entirely clear. The site will definitely offer an extensive toolset for users, including implicit capabilities for new app development.