Mastercard has announced the launch of the Multi Token Network (MTN), a new solution designed to enhance the security, scalability, and interoperability of transactions within the blockchain and digital asset ecosystems. The MTN aims to enable more efficient payment applications and trade.
Four Pillars of Trust
The MTN, which Mastercard is beginning to test, is designed around four pillars of trust to meet the main needs of the industry. These include Counterparty Trust, Trust in the Digital Payment Asset, Trust in Technology, and Confidence in Consumer Protection.
Counterparty Trust
Effective identity management and permissions are crucial for building trusted networks. The Mastercard Crypto Credential, announced in April, will be used across all MTN interactions to provide a common set of standards and verification infrastructure. This will enable trusted interactions between consumers and businesses using blockchain networks.
Trust in the Digital Payment Asset
Stable, regulated, and scalable payment tokens are essential to power payment applications. MTN will support and complement efforts by enabling regulated payment tokens to power financial applications.
Trust in Technology
The scalability of blockchain networks and the interoperability between them are critical technologies needed for secure transfers of tokens and assets. MTN seeks to offer these features across all supported tokens and payment networks in a scalable manner.
Confidence in Consumer Protection
MTN will build on Mastercard’s years of experience in developing standards and rules for their card network to provide a common framework for a community of users with shared interests. This includes clear rules that prioritize strong consumer protections, stability, and regulatory compliance.
MTN: A Major Step in the Digital Asset Space
Raj Dhamodharan, Executive Vice President of Blockchain and Digital Assets at Mastercard, described MTN as one of Mastercard’s most ambitious projects in the digital asset space to date. The aim is to support the digital asset industry and stakeholders to help build confidence in its future.
MTN Beta Version and Future Plans
Starting next quarter, the beta version of MTN will be available in the UK and will act as a testbed for developing live pilot applications and use cases with financial institutions, fintechs, and central banks. The first phase of the apps will be powered by tokenized bank deposits. Over time, Mastercard plans to make MTN available in additional markets around the world.
