Bank

2024

Test

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Mastercard, Visa, JPMorgan and more US banks test a shared-ledger technology.</li>
 <li>The new tech would allow common settlement of tokenized assets, such as commercial-bank money.</li>
</ul>
<a href="https://www.bloomberg.com/news/articles/2024-05-08/mastercard-citi-jpmorgan-test-ledger-for-settling-bank-money?utm_content=crypto&amp;utm_medium=social&amp;utm_campaign=socialflow-organic&amp;utm_source=twitter&amp;embedded-checkout=true" rel="noopener noreferrer nofollow" target="_blank">Bloomberg</a> revealed that some of the most important US banks, including JPMorgan, Citi, <a href="https://crypto.ro/en/news/visa-is-considering-enabling-auto-billing-for-users-via-their-cryptocurrency-wallet/" rel="noopener noreferrer nofollow">Visa</a>, Mastercard, and more, are testing shared-ledger technology that would allow the common settlement of tokenized assets, including commercial-bank money, Treasury, and investment-grade debt securities.
Cited by Bloomberg, <a href="https://crypto.ro/en/news/to-launch-the-web3-musician-accelerator-program-mastercard-collaborates-with-polygon/" rel="noopener noreferrer nofollow">Mastercard</a> stated that the Regulated Settlement Network PoC (proof-of-concept) will simulate transactions in dollars.
The main goal of this test phase is to make transactions across borders and systems much faster and easier while, at the same time, reducing error and fraud risks.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
 Mastercard is joining with financial institutions to test ledger technology that would allow the common settlement of tokenized assets <a href="https://t.co/Fv5D1ge1no" rel="noopener noreferrer nofollow" target="_blank">https://t.co/Fv5D1ge1no</a>
 — Bloomberg Crypto (@crypto) <a href="https://twitter.com/crypto/status/1788134554168951055?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">May 8, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<h2 id="ledger-technology-innovates-the-financial-world">Ledger technology innovates the financial world</h2>
Bloomberg continues to analyze the ways in which ledger technology can innovate the traditional financial world. Now, commercial bank money, wholesale central bank money, and securities, including investment-grade debt, are all residing in separate systems.
Once the assets are transformed into tokens that are running on a DLT, this will allow for settlement on the same system.
The trial in which the banks mentioned above are involved is building on a previous 12-week test that began back in late 2022. This test was focused on domestic interbank payments and cross-border payments in US dollars.
More banks that are participating in the trial also include Wells Fargo, Swift, Zions Bancorp, Citigroup and more.
Project contributors who offer their expertise along the way include Bank of New York Mellon Corp. and the International Swaps and Derivatives Association.
Bloomberg finished their piece by noting that financial entities from all over the world have already been experimenting with shared ledgers for tokenized transactions.
For instance, Mastercard, Barclays Plc, and Citi are only a few names that are involved in a new UK pilot program that <a href="https://news.bloomberglaw.com/crypto/barclays-citi-are-among-banks-testing-tokenized-deposits-in-uk" rel="noopener noreferrer nofollow" target="_blank">was announced</a> back in April.
The test does not necessarily mean that the financial entities involved will also pursue commercial deployment as well.
The UK trial was a new stepping stone to creating a viable commercial system that all banks could use for tokenized deposits and securities.

JPMorgan, Mastercard, Visa Test Ledger Tech To Settle Tokenized Assets

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