Mastercard Partners with US Banking Titans for Tokenized Settlement Trials
Mastercard, a payment processing and settlement firm, has partnered with major US banks including Citigroup, Visa, and JPMorgan to test the use of distributed ledger technology (DLT) for banking settlements. The collaboration aims to test a shared-ledger technology called Regulated Settlement Network (RSN), which allows for the settlement of tokenized assets collectively. Currently, different systems are used to handle securities like investment-grade debt and assets from commercial banks. With RSN, these assets can be converted into tokens and settled on a single platform using a distributed ledger. The current phase of trials builds on a 12-week pilot phase that began in 2022, focusing on cross-border and domestic dollar payments. The ongoing proof-of-concept (PoC) trials now concentrate on simulating settlements in the US dollar.
In an effort to enhance cross-border settlements’ efficiency and reduce the risk of errors and fraud, Mastercard aims to apply shared ledger technology to dollar settlements. Raj Dhamodharan, Head of Blockchain and Digital Assets at Mastercard, believes this application has the potential to revolutionize market infrastructures by enabling 24/7 programmable settlements that are frictionless. The RSN PoC has recently included two significant additions to the participating institutions: the interbank tokenized deposit networks, USDF Consortium, as a direct participant, and the Tassat Group as a contributor. Deloitte, a banking giant, will provide advisory services, and the Securities Industry and Financial Markets Association (SIFMA) will be the program manager. A total of 10 prominent banks, including Citi, JPMorgan, and Wells Fargo, are participating in the project, along with six additional participants who will contribute their subject-matter expertise.
The objective of this collaboration is to leverage DLT, specifically tokenization, to streamline and simplify banking settlements. By using a shared ledger for settlements, the process becomes more efficient and less prone to errors or fraudulent activities. Previously, different systems were in place to handle various assets, causing inefficiencies and complexities in the settlement process. Now, by converting these assets into tokens and settling them on a single platform, the entire process can occur seamlessly on a distributed ledger.
The trials initially focused on cross-border and domestic dollar payments, but the current phase expands the scope to include simulations of settlements in the US dollar. This broader approach allows for a more comprehensive understanding of the potential benefits and challenges of implementing RSN on a larger scale. The ultimate goal is to create a market infrastructure that facilitates programmable settlements, allowing transactions to occur 24/7 without any friction.
With the addition of the USDF Consortium and the Tassat Group, the collaboration gains invaluable expertise and resources in the field of interbank tokenized deposit networks. These participants will contribute their knowledge and insights to further enhance the effectiveness and viability of RSN. Deloitte’s advisory services will provide valuable guidance throughout the project.
The partnership between Mastercard, major US banks, and other participants aims to test the use of distributed ledger technology for banking settlements using tokenization. By utilizing a shared ledger technology called Regulated Settlement Network (RSN), the collaboration seeks to streamline and simplify the settlement process, reduce errors and fraud, and ultimately create a market infrastructure that enables programmable settlements. The ongoing trials, which build on a previous pilot phase, now focus on simulating settlements in the US dollar. With the addition of new participants and expert advisory services, the project aims to unlock the potential of shared ledger technology for efficient and secure cross-border settlements.
21 thoughts on “Mastercard Partners with US Banking Titans for Tokenized Settlement Trials”
Leave a Reply
You must be logged in to post a comment.
Mastercard and US banks making strides in streamlining banking settlements! Tokenization and shared ledger technology will undoubtedly enhance efficiency and security in the financial industry.
This collaboration is a game-changer for the financial industry! Mastercard, major US banks, and all the participants working together to test distributed ledger technology for efficient and secure settlements.
Who knew that settlements could be so exciting? Mastercard and major US banks are exploring DLT for banking settlements. Get ready for a revolution in the financial industry!
This partnership seems like a desperate attempt to stay relevant in the ever-evolving world of blockchain.
I highly doubt this collaboration will result in any significant improvements. Just another example of big banks trying to control everything.
Finally, a solution to make banking settlements more efficient and secure! Mastercard and US banks partnering to test the use of distributed ledger technology. Can’t wait to see the results!
This is a step towards a more seamless and secure financial system! Mastercard and major US banks testing the use of DLT for banking settlements. Exciting times for the industry!
I can’t help but feel skeptical about the claims of increased efficiency and reduced fraud.
The only thing this project seems to be good at is wasting time and money.
Tokenization and distributed ledger technology coming together to simplify banking settlements? Count me in! Mastercard and the US banks leading the way in transforming the market infrastructure.
I can’t help but question the motives behind this collaboration. It feels like a power play by the major banks.
Kudos to Mastercard and US banks for their commitment to transforming the settlement process! This collaboration is a step towards a more seamless and secure financial ecosystem.
This whole thing feels like a PR stunt rather than a genuine effort to improve the banking system.
This is a game-changer for the banking industry! Mastercard and major US banks partnering to test distributed ledger technology for settlements. Exciting times ahead!
Finally, a solution to simplify and streamline banking settlements! Mastercard, US banks, and the participants are exploring the use of DLT. Exciting times for the financial industry!
Finally, a solution to streamline banking settlements! 💼 The Regulated Settlement Network is going to revolutionize the way assets are settled. Kudos to Mastercard and the participating institutions for this innovative collaboration! 👏
The fact that Deloitte is involved doesn’t exactly fill me with confidence. 🤔
Mastercard and US banks joining forces? This partnership promises great advancements in the settlement process! Looking forward to more efficient and secure cross-border transactions.
Hats off to Mastercard and US banks for embracing blockchain technology for settlements! This collaboration will pave the way for a more efficient and secure financial industry.
Major kudos to Mastercard and US banks for taking the lead in testing distributed ledger technology for banking settlements! Exciting times ahead for the financial industry.
Bravo to Mastercard and US banks for their commitment to innovation and efficiency in the financial industry! This collaboration is set to revolutionize banking settlements using shared ledger technology.