Mastercard is collaborating with some of the largest U.S. banks to test a shared ledger technology that could revolutionize the settlement of tokenized assets such as commercial bank money, Treasuries, and investment-grade debt securities.
The Regulated Payment Network's proof-of-concept system in testing will simulate transactions in dollars, aiming to enable transactions across borders and systems, reduce errors and fraud, and make the process faster and easier.
Currently, securities such as commercial bank money, wholesale central bank money, and investment grade debt are all managed in separate systems. The introduction of this ledger technology can significantly change the financial landscape. Once these assets are tokenized and run on the distributed ledger, they can be traded on the same system.
This trial builds on a previous 12-week test that started in late 2022 and focused on domestic interbank payments in the US and cross-border payments in dollars.
Participants in the new trial include Citigroup Inc., JPMorgan Chase & Co., US Bancorp, Wells Fargo & Co., Visa Inc., Swift, TD Bank NA and Zions Bancorp.
*This is not investment advice.