Mastercard
Addresses four key issues in the digital asset landscape including:
- Lack of confidence in counterparty compliance
- Lack of trust in the underlying store of value
- Lack of interoperability between networks
- Lack of clear governance procedures to set the rules of the road for participants.
Mastercard Multi-Token Network (MTN): MTN is a network overlay across multiple blockchains to enable compliant transaction with validated counterparties. It provides a set of foundational capabilities designed to make transactions within digital asset and blockchain ecosystems more secure, scalable and interoperable — ultimately enabling more efficient payment and commerce applications. MTN will leverage Mastercard Crypto Credential, a solution announced in April, to establish common verification standards and infrastructure.
Services provided:
- MTN Governance Framework
- Compliance monitoring
- Network governance
- Access to Stable and Regulated Money-like Assets
- Collateralized stablecoins
- CBDCs
- Tokenized deposits
- MTN Wrapping Service
- Secure cross-chain transactions: Facilitates secure transactions across different blockchain ecosystems
- No need to share bank or VASP: Allows for seamless transactions even if users do not share the same VASP or bank
- Seamless transactions between providers: Enhances interoperability between various financial service providers to streamline transactions.
- Banks: Offered a trusted compliance framework, tokenization of bank deposits, and the opportunity to continue core business operations
- Consumers: Provided with a simpler and safer way to access digital assets, using the same accounts for both traditional and digital transactions, and ensuring robust data privacy and consumer protections
- Businesses: Offered turnkey standards for secure and compliant blockchain-based applications, with ensured interoperability and strong data privacy and consumer protections
- MTN Foundation and Structure
- Forms a secure network overlay using a group of validated counterparties
- Operates across multiple public and private blockchains
- Ensures all transactions comply with regulations and adhere to specific governance rules
- Onboarding Process for Banks and VASPs
- Must meet stringent, case-based onboarding standards
- Implementation of robust KYC, KYB processes
- Continuous screening and monitoring to prevent illicit activities including money laundering and terrorist financing
- Stable and Regulated Payment Tokens
- Money-like assets to be used as trusted store of value and medium of exchange in the network
- Includes fully collateralized stablecoins, CBDCs, and tokenized retail bank deposits
- Facilitating Secure Cross-chain Interoperability
- Addresses issues of fragmented networks and security vulnerabilities
- Enables secure cross-chain interoperability across blockchains and traditional networks
- Comprehensive Governance Framework
- Establishing rules to govern interactions between network participants
- Ensures protection for consumers and businesses, and outlines liability among participants
- Leverages Mastercard's experience in developing rules for payment networks
- Confidence in Transaction Compliance within MTN
- Transactions settled on public or private chains can be conducted with confidence in their compliance
- Transactions settled on underlying chains but all MTN transactions are compliant
- Provides clarity and predictability in the rules governing transactions
- Shared Set of Commercial Terms and Standards
- Establishes uniform transaction standards, remedies, and technologies for digital asset payments
- Allows seamless transactions across various chains in a secure and compliant manner
- Potential Features of the MTN
- Offers consumer protections including zero-liability guarantees and potential reversals
- Standardizes terms and conditions for certain programmable smart contracts
- Clearly delineates the tokens permitted for use as payment on the network
- Users can utilize digital representations of a portion of their bank deposits in transactions on the MTN
- These "tokenized deposits" can interact natively with other tokens and be used in programmable smart contracts
- MTN Compatible Wallet
- Facilitates customer interactions through a wallet compatible with MTN
- Provided by a bank, VASP, or other licensed entity allowing interaction with crypto assets from various blockchains
- Allocation of Liability and Smart Contracts
- Rules allocating liability among participants, with some being executed through smart contracts
- Enables efficient and automated execution of pre-programmed governance mechanisms
Raj Dhamodharan - Executive Vice President, Blockchain and Digital Assets.
Last modified 18d ago