✨ Mastercard: Setting the Pace in the Banking Blockchain Race
posted 8 May 2024
Mastercard, in collaboration with banking giants CITI and JPMorgan, is currently testing a blockchain-based settlement system.
The project is currently undergoing a proof-of-concept phase with simulated dollar transactions in play. The developers anticipate that this regulated system will streamline and expedite international transaction processes while mitigating the risks of errors and fraud.
In the current landscape, banking money and security records are maintained across various systems. By tokenizing these records and moving them to a shared blockchain register, the project aims to enhance the efficiency of transactions involving these assets.
The experiment includes contributions from Bancorp, Wells Fargo & Co., Visa Inc., Swift, TD Bank NA, and Zions Bancorp, along with fintech companies like BNY Mellon, Broadridge, DTCC, ISDA, and Tassat Group, sharing their expertise. The New York Innovation Center and the Federal Reserve Bank of New York are monitoring the tests.
Part of the broader Regulated Settlement Network (RSN) initiative, this experiment is set to evaluate the pros and cons of tokenizing various securities, including treasury bonds and investment-grade debts.
Despite the testing phase, there is no guarantee from the participating companies that the system will be commercially implemented.
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