Company Mastercard says its network will get a “level of programmability” similar to famous crypto-assets

Company Mastercard will begin pilot testing the Multi-Token Network (MTN) with tokenized bank deposits. The first trials will take place in the UK with a number of banks and financial institutions.

Selected banks and financial institutions will be given access to the MTN functionality to develop possible use cases for tokenized deposits.

Raj Damodaran, head of cryptocurrency and blockchain at Mastercard, expects That in the future the initiative will also extend to regulated Stablecoins and CBDC digital national currencies.

“Today, the catalyst for the movement of the global economy is regulated money in banks. We are starting to create tokenized bank deposits. The unit of money in the bank account acts as a digital asset in the blockchain, providing the same level of programmability as digital currencies in the crypto-ecosystem,” he explained in a comment for Coindesk.

In October 2022, Mastercard announced plans to become an intermediary for traditional financial institutions to trade cryptocurrencies. A Crypto Secure tool was also announced. And which will help banks to identify and prevent fraudulent transactions going through crypto exchanges.

Our experts note that earlier it became known that after September 25. The company Paysafe Payment Solutions will stop supporting payment services in euros for the cryptocurrency exchange Binance. Users of the largest cryptocurrency will have to update bank details. And possibly agree to the new terms and conditions to continue using SEPA services.

Payments in USDC stablecoins can be made not only in the Web3 space. But also in real merchant services that accept Mastercard cards for online payment

Mastercard Payment System and its Web3 protocol Immersve will allow users to make cryptocurrency payments in physical and digital worlds. Including decentralized services and metaverse, Cointelegraph reported. Settlements will take place in USD Coin Stablecoins (USDC), which are converted to fiat currency for transactions in a Mastercard system.

Transfers can be made at actual merchant services that accept online payment cards issued by Mastercard. Users will be able to access services using their cryptocurrencies. Online payments will be made after confirming the transaction with private keys.

Payments will be made without third-party mediation. Mastercard and Immersve will use decentralized protocols for payments.

Moreover, DeFi-projects and cryptocurrencies will be able to integrate with API interfaces. As well as Immersve smart contracts for transactions wherever Master card is accepted.

Our experts note that payment systems are increasingly interested in cryptocurrency transactions. Earlier this month, for example, Visa conducted a trial run of stablecoin payments in SWIFT. Rival Master card is currently working to incorporate into its system the ability to convert cryptocurrencies into fiat money and back.