Mastercard and Standard Chartered Bank Hong Kong (SCBHK) have successfully completed the first live testing of Mastercard's Multi-Token Network (MTN) as part of the Hong Kong Monetary Authority's (HKMA) Fintech Supervisory Sandbox program. The purpose of the pilot was to demonstrate "the ability for consumers and businesses to connect, interact and transact" using tokenized assets and currency.
The concept was tested in a real-world situation where a customer of SCBHK's virtual bank, Mox Bank, expressed a desire to purchase a #carbon credit using their deposited funds. Mox approached SCBHK to tokenize the carbon credit through Libeara, a #tokenization platform created by SC Ventures, the venture capital arm of Standard Chartered.
Tokenization of real-world assets and the use of various forms of tokenized currency are key aspects of the future development of the financial industry, according to Mary Hewen, CEO of Standard Chartered Hong Kong. Mastercard's MTN enables the tokenization of various assets and currencies, providing a secure and efficient real-time exchange between different blockchains.
Mastercard has previously conducted successful MTN trials with the Reserve Bank of Australia and the HKMA using central bank digital currency (CBDC). While none of these CBDCs are currently operational, the trials demonstrated the potential for MTN to support various forms of digital currencies and assets.
The HKMA is committed to making Hong Kong a leading hub for #digital assets and is reportedly pressuring local banks, including SCBHK, to improve their services for #cryptocurrency exchanges and digital asset companies. SCBHK is actively involved in various HKMA initiatives such as Project Ensemble, the e-HKD pilot program and the international mBridge project, which shows its commitment to fostering innovation in digital finance.
The successful testing of Mastercard's MTN in collaboration with SCBHK demonstrates the potential of tokenization technology in transforming the way consumers and businesses interact. It also underscores Hong Kong's commitment to driving innovation in digital assets and reinforces its position as a leading financial technology hub in the region.
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