Mastercard Inc. has embarked on a groundbreaking collaboration with some of the largest US banks to test shared-ledger technology aimed at facilitating the common settlement of tokenized assets. These assets include commercial-bank money, Treasury securities, and investment-grade debt securities. Referred to as the Regulated Settlement Network proof-of-concept, the initiative aims to simulate transactions in dollars. According to Mastercard, the ultimate goal is to enhance the speed and efficiency of cross-border transactions while minimizing the risks associated with error and fraud.
Transformative Potential of Ledger Technology
The introduction of ledger technology could potentially revolutionize the current landscape of financial transactions. Presently, assets such as commercial bank money and securities like investment-grade debt operate on separate systems. However, by converting these assets into tokens running on a distributed ledger, settlement processes could occur on a unified platform. This trial builds upon a previous 12-week test initiated in late 2022, which focused on domestic interbank and cross-border payments in dollars.
Noteworthy participants in the trial include Citigroup Inc., JPMorgan Chase & Co., Visa Inc., Swift, and several other major players in the financial industry. Additionally, the expertise of institutions such as the Bank of New York Mellon Corp. and the International Swaps and Derivatives Association will contribute to the success of the trial. Although financial institutions worldwide have been experimenting with shared ledgers for tokenized transactions, the current trial does not guarantee commercial deployment.
Also Read: Ripple Vs SEC Update: Lawyers Analyze SEC’s Final Reply In Remedies Phase
US Banks Seek SEC Assistance for Bitcoin ETF Participation
Several major banks in the United States are lobbying the Securities and Exchange Commission (SEC) for assistance in participating in the recently approved spot Bitcoin ETFs market. In a joint letter addressed to SEC Chair Gary Gensler, leading banking associations including the Bank Policy Institute (BPI) and the American Bankers Association (ABA) have requested targeted modifications to Staff Accounting Bulletin No. 121 (SAB 121).
Concurrently, the collapse of Republic First Bank, officially closed on April 26th, 2024, has underscored the challenges facing the banking sector. This closure marks the second collapse of Republic First Bank, previously failing in 2023. The event highlights ongoing concerns within the industry and emphasizes the need for regulatory adjustments to address systemic vulnerabilities.
Also Read: Binance To Cease Support For These Pairs, Prices To Retreat?
The post Mastercard Collaborates Major US Banks To Test Tokenized Asset Settlement appeared first on CoinGape.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed