Mastercard announces plan to launch its blockchain
Owotunse Adebayo – June 29, 2023
TL;DR Breakdown
- Mastercard has announced plans to launch its multi-token network blockchain this summer.
- The company wants to prioritize security in its test version.
Mastercard, the renowned payment processor, has announced its foray into blockchain technology with the upcoming launch of a test version of its Multi-Token Network (MTN) this summer. The beta release of MTN is set to take place in the United Kingdom, marking a significant step in Mastercard’s blockchain push.
Mastercard is set to launch the test network in the summer
Raj Dhamodharan, the head of crypto and blockchain products at Mastercard, expressed in a letter that MTN would serve as a testbed for developing live pilot applications and use cases in collaboration with financial institutions, fintech, and central banks. This initiative aims to explore the potential of Mastercard’s permissioned blockchain in transforming its payment capabilities.
Mastercard’s strategy revolves around enticing developers to build on its permissioned blockchain platform. The company believes that by positioning its blockchain as a reliable infrastructure, it can attract developers to leverage its capabilities for various applications. MTN is expected to expand its reach to more global markets, contingent upon establishing additional partnerships.
To kickstart the development process, the firm has promoted the MTN Innovation Sprint, inviting teams to participate. Selected teams will gain access to MTN’s capabilities and begin building applications on the platform. Developers will be encouraged to create apps on M permissioned blockchain, which is built on the Ethereum network, as reported by Fortune. Initial applications on the platform will involve “tokenized bank deposits,” providing a starting point for exploring the potential of digital assets within the banking sector.
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Tokenized bank deposits have been gaining traction among central banks and commercial banks, with institutions like JPMorgan Chase showing interest in this concept. MTN will leverage its transaction verification tool, known as the Mastercard Crypto Credential, which was initially designed to enhance safety and facilitate secure transfers of tokens and assets. The tool utilizes aliases to simplify sharing wallet addresses and employs metadata to define wallet attributes, thereby preventing unintended transactions from occurring.
The company is prioritizing security in the test version of the network
In light of recent high-profile exploits in the crypto space, Mastercard underscores the importance of safety in token transfers and asset management. Notable incidents, such as the $200 million Euler hack in March and the $160 million Wintermute hack, have highlighted the need for robust security measures within the blockchain ecosystem. By prioritizing safety and implementing tools like Mastercard Crypto Credential, Mastercard aims to provide users with a secure environment for managing and transacting digital assets.
Mastercard has also entered into partnerships with several prominent crypto exchanges, including Binance, Bit2Me, Bitso, and Bybit. These collaborations enable the issuance of debit or prepaid cards that allow users to make purchases using their digital assets, further bridging the gap between traditional financial systems and cryptocurrencies.
As Mastercard prepares to launch the test version of its Multi-Token Network, it demonstrates the company’s commitment to exploring the potential of blockchain technology in revolutionizing the payments landscape. By leveraging its permissioned blockchain and fostering collaborations with industry stakeholders, Mastercard aims to enhance its offerings while prioritizing the security and integrity of digital transactions. As the blockchain ecosystem continues to evolve, such initiatives contribute to the broader adoption of digital assets and the establishment of a robust infrastructure for the future of finance.
Source: Cryptopolitan
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