Mastercard will launch a Multi-Token Network (MTN) pilot with tokenized bank deposits, Coindesk writes. British financial institutions will be the first to participate in the project.
Banks will have access to MTN functionality to develop potential use cases for such deposits. Raj Damodaran, Head of Cryptocurrency and Blockchain at Mastercard, notes that in the future, this practice should be extended to regulated stablecoins and CBDC digital national currencies.
“We are starting to create tokenized bank deposits. A currency unit in a bank account acts as a digital asset on the blockchain, providing the same level of programmability as digital currencies in the crypto ecosystem,” Damodaran explained.
Last fall, Mastercard announced its go-between for traditional financial institutions in the field of cryptocurrency trading. The company also talked about the Crypto Secure tool, which is designed to help banks identify and fight fraudulent transactions.
Author:
Natalia Gormaleva
Source: RB
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