Mastercard and Standard Chartered Advance Blockchain with Successful Multi-Token Network Test

Mastercard and Standard Chartered have executed the initial real-time test of Mastercard's Multi-Token Network (MTN) within Hong Kong Monetary Authority (HKMA) Fintech Supervisory Sandbox. This pilot, leveraging carbon credit tokenization, entailed an atomic swap between tokenized deposits and carbon credits.

Mastercard and Standard Chartered Advance Blockchain Technology with Successful Live Test of Multi-Token Network

Hong Kong, May 15, 2024 - Mastercard and Standard Chartered Bank Hong Kong (SCBHK) have achieved a significant milestone by successfully completing the first live test of Mastercard's Multi-Token Network (MTN) within the Hong Kong Monetary Authority (HKMA) Fintech Supervisory Sandbox. This groundbreaking initiative demonstrates the potential for blockchain technology to revolutionize financial transactions.

The proof-of-concept pilot showcased the tokenization of carbon credits and the execution of an atomic swap between the tokenized deposit and carbon credit. This innovative approach paves the way for the creation of secure, efficient, and interoperable digital asset markets.

"The successful live test of Mastercard's Multi-Token Network represents a transformative step forward for the financial industry," said Helena Chen, Mastercard's Managing Director for Hong Kong and Macau. "It will reshape how consumers and businesses connect, interact, and transact, unlocking new possibilities for innovation and growth."

The pilot project was initiated when a client of SCBHK's virtual bank, Mox Bank, sought to purchase a carbon credit using deposited funds. Mox subsequently requested SCBHK to tokenize the carbon credit through Libeara, a tokenization service provider launched by Standard Chartered's venture arm, SC Ventures.

Libeara's tokenization platform enabled the creation of a digital representation of the carbon credit on the blockchain, ensuring its authenticity and facilitating its seamless transfer between parties. The atomic swap mechanism, a key feature of MTN, allowed for the simultaneous exchange of the tokenized deposit and carbon credit in a single transaction, eliminating counterparty risk and enhancing transaction security.

"We are delighted to have collaborated with Mastercard on this pioneering project," said Judy Hsu, SCBHK's Chief Executive Officer. "The successful live test of the Multi-Token Network is a testament to our commitment to driving innovation and exploring the full potential of blockchain technology for the benefit of our clients and the broader financial ecosystem."

The successful completion of this live test demonstrates the maturity of blockchain technology and its readiness for real-world applications within the financial sector. Mastercard and Standard Chartered are committed to further exploring the capabilities of MTN and its potential to transform a wide range of industries, including trade finance, supply chain management, and digital asset custody.

As the financial landscape continues to evolve, Mastercard and Standard Chartered remain at the forefront of innovation, leveraging blockchain technology to create a more secure, efficient, and inclusive financial system for the digital age.