BlockchainMastercard Collaborates with Leading Banks on Pilot Program for Tokenized Settlement

Mastercard Collaborates with Leading Banks on Pilot Program for Tokenized Settlement

Date:

Forging a New Path in Financial Settlements: Mastercard and Banking Giants Pilot Regulated Settlement Network (RSN)

In a groundbreaking collaborative effort, Mastercard has partnered with major US banks, including Citigroup, Visa, and JPMorgan, to pilot the Regulated Settlement Network (RSN), a distributed ledger technology solution aimed at revolutionizing financial settlements.

The RSN project, which is currently in the trial phase, explores the use of tokenization to facilitate the collective settlement of various assets, such as Treasurys, investment-grade financial instruments, and commercial bank money. This innovative approach seeks to streamline the settlement process and mitigate the risks of fraud and errors.

Addressing the Fragmentation of Financial Systems
At present, assets like commercial bank money and securities operate on separate systems, hindering efficient settlement processes. The RSN aims to address this fragmentation by pooling resources and issuing tokens for different assets, allowing the settlement to take place on a single platform powered by a distributed ledger.

Expanding on a 12-week pilot phase that began in late 2022, the current trial phase is already underway. Previous iterations of the test have focused on interbank dollar transactions, both local and international, with the current proof-of-concept (PoC) RSN tests centered on modeling dollar settlements.

Streamlining Payments and Reducing Friction
According to Mastercard, the project’s goals include streamlining international payments and decreasing the likelihood of fraud and mistakes. Raj Dhamodharan, Mastercard’s head of blockchain and digital assets, believes that the shared ledger technology used for dollar settlements could pave the way for the next generation of market infrastructures, enabling programmable settlements that are available 24/7 and devoid of friction.

Expanding the RSN Ecosystem
The RSN PoC has recently welcomed two new participants: the USDF Consortium and the Tassat Group, both of which will be involved in the interbank tokenized deposit networks. Additionally, the financial consulting firm Deloitte will provide advisory services to the project.

As the RSN pilot progresses, the collaboration between Mastercard and the banking giants holds the promise of transforming the financial settlement landscape, leveraging the power of distributed ledger technology to streamline processes, enhance security, and unlock new possibilities in the world of digital finance.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Hot News

Related
Related

Justin Sun Maintains ETH Liquidation Trend, Transferring $244.9 Million in Ethereum

The transactions were made by Justin Sun, coinciding with the price of ETH starting its rebound. Tr...

Ethereum Reaching $10,000 by 2025 Is Almost Certain, with One ETH-Based Altcoin Expected to Surge by 9,450%

Whether Ethereum will reach $10k in the future depends on the platform’s capacity for network deve...

Seeking the Finest New Meme Coins for Purchase This Weekend? BTFD Coin Offers Attractive Discounts, Floki Inu Experiences Growth, Cheems Witnesses Recovery.

Back in 1973, during the economic slump, some savvy investors saw an opportunity amidst the chaos. T...

The Altcoin with the Highest Trading Volume on Binance

XRP is the most traded altcoin on Binance this December with over $116.6 million in trading volume....