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Mastercard Joins U.S. Banking Giants in Developing Blockchain Technology for Banking Payments
Mastercard has partnered with U.S. banking giants to explore distributed ledger technology for banking payments using tokenization. The collaboration aims to test a shared ledger technology known as the Regulated Settlement Network (RSN) to enhance the efficiency of cross-border payments and reduce the risk of errors and fraud.
The project involves ten banking giants participating in testing the new technology, including Citi, JPMorgan, Mastercard, Swift, TD Bank, U.S. Bank, USDF, Wells Fargo, Visa, and Zions Bancorp. Additionally, six other project participants will contribute their expertise in this area, such as the non-profit MITER Corporation, BNY Mellon, Broadridge, DTCC, ISDA, and Tassat Group.
The technology enables the collective settlement of tokenized assets like Treasury bonds, investment-grade debt instruments, and commercial bank money. Unlike existing technologies, RSN allows for settlement on a single platform by converting various assets into tokens and placing them on a distributed ledger.
Mastercard has been actively involved in blockchain technology development and recently collaborated with the multichain wallet MetaMask to test an on-chain card integrated with the Mastercard network. This partnership brings together a crypto wallet with over 30 million active users per month and a global financial payment system that includes credit and debit cards.
The initiative showcases the evolving landscape of blockchain technology and the growing interest of public and private organizations in leveraging its potential to enhance operational efficiencies and address real-world challenges. As blockchain technology matures, close partnerships between organizations will be essential to explore its applications and benefits further.
