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Home » Mastercard and Standard Chartered conduct trial of tokenized deposit transaction
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Mastercard and Standard Chartered conduct trial of tokenized deposit transaction

2024-05-15No Comments2 Mins Read
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Mastercard and Standard Chartered conduct trial of tokenized deposit transaction
Mastercard and Standard Chartered conduct trial of tokenized deposit transaction
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Mastercard and Standard Chartered Bank Hong Kong (SCBHK) have successfully conducted the initial live trial of Mastercard’s Multi-Token Network (MTN). The proof-of-concept pilot involved tokenizing carbon credits within the Hong Kong Monetary Authority (HKMA) Fintech Supervisory Sandbox.

During the project, a client of SCBHK’s virtual bank, Mox Bank, deposited funds into Mox and expressed interest in purchasing a carbon credit. Mox Bank then approached SCBHK to tokenize the carbon credit using Libeara, a tokenization service provider launched by Standard Chartered’s venture arm, SC Ventures. The MTN tokenized the deposit, and an atomic swap, which is a real-time swap between different blockchains, was executed for the two tokens.

Earlier, in June 2023, Mastercard launched the MTN on its private blockchain. It had previously undergone trial runs in collaboration with the Reserve Bank of Australia, utilizing wrapped central bank digital currency (CBDC), and the HKMA, utilizing its e-HKD CBDC. It is important to note that neither of these CBDCs is currently live. Helena Chen, the Managing Director of Hong Kong and Macau at Mastercard, stated:

The HKMA has reportedly exerted pressure on Hong Kong banks, including SCBHK, to enhance their services for cryptocurrency exchanges. SCBHK is actively involved in the development of the HKMA’s Project Ensemble, its e-HKD pilot program, and the multinational Project mBridge. The e-HKD pilot project commenced its second phase in March.

In addition, Standard Chartered has also participated in projects with SWIFT, utilizing CBDC, and U.K. Finance, utilizing the Regulated Liability Network. SC Ventures established a crypto fund in the United Arab Emirates in November. Furthermore, HSBC bank and China’s Ant Group conducted a test for tokenized deposit transactions in an HKMA sandbox using Ant Group’s blockchain in November. HSBC also offers Bitcoin and Ethereum futures exchange-traded fund trading in Hong Kong.

Magazine: Asia Express

[img] Source: MetasgameOfficial

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