Mastercard Leads Major US Banks in Trials for Tokenized Asset Settlements
Mastercard, a prominent player in payment processing and settlements, has joined forces with key US banking institutions, including Citi, JPMorgan, Swift, TD Bank N.A., U.S. Bank, USDF, Wells Fargo, Visa, and Zions Bancorp, to initiate trials aimed at revolutionizing banking settlements through tokenization.
The current landscape witnesses various systems handling securities and assets, leading to disjointed settlement procedures.
To address this, the collaborative effort will leverage a shared-ledger technology known as the Regulated Settlement Network (RSN), where assets are tokenized and settled on a distributed ledger, streamlining the settlement process.
RSN facilitates the collective settlement of tokenized assets such as Treasurys, investment-grade debt instruments, and commercial bank money on a unified platform.
The ongoing trial phase extends from a 12-week pilot initiated in late 2022, which primarily focused on cross-border and domestic dollar payments between banks.
Present proof-of-concept (PoC) trials of RSN specifically simulate settlements in the United States dollar.
Raj Dhamodharan, Head of Blockchain and Digital Assets at Mastercard, emphasized the transformative potential of shared ledger technology in settlements, stating that “the application of shared ledger technology to dollar settlements could unlock the next generation of market infrastructures – where programmable settlements are 24/7 and frictionless.”
For more Web3 news, check out the XGA newsfeed.
Institutional Interest in Bitcoin ETFs Surges as Market Dynamics Shift Institutional interest in Bitcoin (BTC)…
MIMOS Berhad Partners with Worldcoin Foundation and MyEG MIMOS Berhad, the applied research and development…
Manchester City and OKX Launch ‘Unseen City: Echoes of Blue’ Virtual Escape Room Manchester City…
Donald Trump Jr. Announces Plans to Launch DeFi Platform to Address Banking Inequality Donald Trump…