Mastercard is about to launch its MTN (Multi-Token Network) product, which shows the company’s increasing focus on digital assets and blockchain technology.

According to the announcement, MTN aims to make transactions within the digital asset and blockchain ecosystem secure, scalable and interoperable, providing a set of basic functions for efficient payment and business applications.

The product has four pillars of trust designed to address four key industry needs: trust in counterparties, trust in digital assets, trust in technology and trust in consumer protection.

As a trusted global payments company, Mastercard has years of experience setting standards and rules for its credit card network.

MTN will leverage this experience to provide a common framework for regulatory compliance, with a focus on credit card network stability and stronger consumer protections such as anti-money laundering (AML) and know-your-customer (KYC) regulations.

In addition, MTN will also utilize Mastercard’s Crypto credentials.

The credential provides a common set of verification standards and infrastructure that enables trustworthy interactions between consumers and businesses on blockchain networks.

It also improves the scalability and interoperability of blockchain networks, enabling regulated payment tokens to power financial applications.

Serving as a testbed to develop live pilot applications and use cases with financial institutions and central banks, a beta version of MTN will be available in the UK this summer.

It is reported that the first phase of the test will be supported by tokenized bank deposits, with plans to launch MTN in other markets around the world over time.

Mastercard’s MTN is one of the company’s most promising projects in the digital asset space to date, so what are the potential use cases for investors with this new product?

One of the main applications of MTN is to facilitate cross-border payments through the use of stable, regulated and scalable payment tokens.

This will provide a more efficient and cost-effective alternative to traditional payment systems, improving transaction times and reducing foreign exchange costs.

The product also has potential applications in supply chain management, where it can be used to track and manage supply chain transactions.

This will help increase transparency and efficiency in the flow of goods and services, thereby reducing costs, improving logistics, and increasing visibility across the supply chain.

Securities tokenization is another possible area for MTN, which will provide greater liquidity and accessibility to investors and help democratize investment, providing more opportunities for individuals and micro-enterprises.

Finally, MTN can also be used to secure CBDC (central bank digital currency) transactions.

As Mastercard has demonstrated through its recent partnership with the Reserve Bank of Australia (RBA) on its CBDC pilot, it can ensure that CBDC transactions are secure, transparent and compliant with regulatory requirements.

In summary, MTN provides a secure, scalable and interoperable solution for efficient payments and business applications, which is a significant advancement for the digital asset and blockchain ecosystem.

As Mastercard continues to develop the product, new use cases may emerge that will further empower digital assets and blockchain technology.