Mastercard Teams Up with Major Banks for Tokenized Settlement Pilot
- This is a test run in Regulated Settlement Network (RSN), a distributed ledger technology.
- The current proof-of-concept (PoC) RSN tests are centered in modeling dollar settlements.
In order to test distributed ledger technology for financial settlements utilizing tokenization, Mastercard has partnered with major US banks including Citigroup, Visa, and JPMorgan.
This collaboration between the payment processor and the banking titans is a test run in Regulated Settlement Network (RSN), a distributed ledger technology. Through RSN, it is possible to settle tokenized assets collectively, including Treasurys, investment-grade financial instruments, and money from commercial banks.
Trial Phase Already Underway
Moreover, assets like money from commercial banks and securities like investment-grade debt operate on separate systems at the moment. Also, by pooling resources and issuing tokens for different assets, RSN will allow settlement processes to take place on a single platform using a distributed ledger.
Expanding on a 12-week pilot phase that began in late 2022, the current trial phase is already underway. Prior iterations of the test have concentrated on interbank dollar transactions, both local and international. The current proof-of-concept (PoC) RSN tests are centered in modeling dollar settlements.
Mastercard stated in a statement on May 8 that the projects goals are to streamline international payments while decreasing the likelihood of fraud and mistakes.
Shared ledger technology used to dollar settlements might open the door to the next generation of market infrastructures, according to Raj Dhamodharan, Mastercards head of blockchain and digital assets. This would allow for programmable settlements that are available 24/7 and do not cause any friction.
Two major banking organizations have just joined the RSN PoC: the USDF Consortium and the Tassat Group will both be involved in the interbank tokenized deposit networks, while another financial behemoth, Deloitte, will be offering advisory services.
Highlighted Crypto News Today:
18 G20 Nations Emerge as the Hubs for Crypto Degens
Read more: https://thenewscrypto.com/mastercard-teams-up-with-major-banks-for-tokenized-settlement-pilot/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
