> For the complete documentation index, see [llms.txt](https://qualitax.gitbook.io/interop/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://qualitax.gitbook.io/interop/solutions-providers/mastercard.md). # Mastercard Solutions Providers There are a few reasons why Mastercard is investing resources in exploring crosschain interoperability: 1. Staying competitive - Mastercard has to keep innovating in the payments space as new technologies emerge fast. Developing solutions like MTN could help retain its competitive edge. 2. New revenue opportunities - Offering infrastructure and services related to regulated cross-chain transactions and assets creates new revenue streams for Mastercard. 3. Engaging crypto ecosystem - Initiatives like MTN allow Mastercard to engage with and expand into the emerging crypto/blockchain ecosystem in a compliant manner. 4. Customer expectations - Like banks and merchants, Mastercard's customers are exploring blockchain use cases. MTN could help meet their evolving needs. 5. Technology leadership - Pioneering compliant blockchain infrastructure could help reinforce Mastercard's image as a technology leader in payments. 6. Preparing for CBDCs - As central banks pilot CBDCs, Mastercard needs to enable CBDCs to work within its existing network and solutions. 7. Interoperability imperative - Enabling interoperability between traditional and blockchain-based financial systems is key to provides a seamless experience and leverage network effect. 8. Responsible innovation - Mastercard can innovate in digital assets in a regulated way, balancing innovation with compliance. ## 1. Problems/Challenges it aims to solve *** 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. ## 2. Solutions *** **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. ## 3. Target Customers *** * **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 ## 4. Key Points *** * **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 ## 5. People Raj Dhamodharan - Executive Vice President, Blockchain and Digital Assets. ## 6. Industry Initiatives Participation ## 7. Resource {% embed url="" %} [Whitepaper - Unlocking the potential of digital asset innovation: Building a Mastercard Multi-Token Network](https://www.mastercard.com/news/media/5zmixdjy/unlocking-the-potential-of-digital-asset-innovation-building-a-mastercard-multi-token-network-1-1.pdf)