MTN addresses major trust issues confronting digital assets.

Mastercard (NYSE: MA) has announced the launch of the Multi Token Network (MTN), a set of capabilities aimed at enhancing security, scalability, and interoperability in digital asset and blockchain ecosystems.

The MTN focuses on four pillars of trust to address industry needs.

Firstly, it emphasizes effective identity management and permissions to build trusted networks. Mastercard’s Crypto Credential offers common verification standards for trusted interactions on blockchain networks. (Mastercard)

Secondly, the MTN prioritizes stable and regulated payment tokens to power financial applications. It supports efforts to tokenize commercial bank deposits and explore a concept called the Regulated Liability Network (RLN).

The third pillar is scalability and interoperability among blockchain networks, essential for safe transfers of tokens and assets. Mastercard’s collaboration with the Reserve Bank of Australia demonstrates how central bank digital currencies (CBDCs) can be used for seamless purchases on public blockchains.

Lastly, Mastercard draws on its experience in developing standards and rules for its card network to provide consumer protections and regulatory compliance.

The beta version of MTN will be launched in the U.K. in the third quarter for testing and pilot applications with financial institutions, fintechs, and central banks, initially powered by tokenized bank deposits.

Mastercard plans to expand MTN to other markets worldwide over time.

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