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Mastercard and Standard Chartered Bank Hong Kong (SCBHK) have successfully completed their first live experiment on the execution of tokenized deposits using the Mastercard Multi-Token Network (MTN). 
This initiative tested how blockchain technology could be used in the banking sector. It was done under the supervision of the Hong Kong Fintech Supervisory Sandbox.
<h2 id="mastercard-multi-token-network-in-action">Mastercard Multi-Token Network in Action</h2>
The research was carried out on a Mox Bank client, a digital bank under <a href="https://coingape.com/bitcoin-miner-marathon-digital-partners-standard-chartered-backed-zodia-custody/" rel="noopener noreferrer nofollow">Standard Chartered</a>, who bought a carbon credit. Mox Bank asked SCBHK to tokenize this asset, and that was done through the use of Libeara, a tokenization platform developed by SC Ventures, Standard Chartered’s innovation arm.&nbsp;
The transaction was carried out via Mastercard’s MTN, which resulted in an atomic swap between the tokenized deposit and the carbon credit. Hence, the client received the tokenized asset in their digital wallet.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Mastercard executes first tokenized deposit transactions with StanChart subsidiaries <a href="https://t.co/fKRkg90gRf" rel="noopener noreferrer nofollow">https://t.co/fKRkg90gRf</a> <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f3c1.png" alt="🏁" class="wp-smiley" style="height: 1em; max-height: 1em;">
 — 𝗕𝗮𝗻𝗸XRP (@BankXRP) <a href="https://twitter.com/BankXRP/status/1790718821415727129?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 15, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Helena Chen, the Managing Director of Mastercard for Hong Kong and Macau, said, 
<blockquote>
 “Mastercard is delighted to join forces with SCBHK, Mox, and Libeara to create applications that will change the way consumers and businesses transact.”
</blockquote>
<h2 id="broader-implications-for-financial-technology">Broader Implications for Financial Technology</h2>
This test is a part of the general tendency of integrating blockchain technology into financial organizations. The Hong Kong Monetary Authority (HKMA) has been forward-looking with Project Ensemble, which is to research tokenized deposits and wholesale Central Bank Digital Currencies (<a href="https://coingape.com/swift-aims-to-unify-cbdcs-with-traditional-banking/" rel="noopener noreferrer nofollow">CBDCs</a>). 
Moreover, this initiative is in the same line with the worldwide trend of digital currency, which is the case with Standard Chartered’s involvement in other important projects like the multi-CBDC cross-border payment platform, mBridge, and the eHKD CBDC trials.
The success of this test, as a result, could be the starting point for the more general use of tokenized assets and digital currencies, which will change the way banking transactions are conducted. Mary Huen, the CEO of <a href="https://coingape.com/mastercard-collaborates-major-us-banks-to-test-tokenized-asset-settlement/" rel="noopener noreferrer nofollow">Standard Chartered</a> Hong Kong, said, 
<blockquote>
 “Under the leadership of the HKMA, we are the first to carry out this project and to be the catalyst for the use of tokenization in financial assets. “
</blockquote>
<h2 id="developments-and-sectoral-trends">Developments and Sectoral Trends</h2>
The financial industry, consequently, is observing these developments very carefully as they might be the beginning of a new age in financial transactions that are marked by the increase in effectiveness, transparency, and security. 
In addition to that, other reports and analyses on bank-issued <a href="https://coingape.com/2023-sees-ripple-embrace-cbdcs-and-xrpl-developer-growth/" rel="noopener noreferrer nofollow">stablecoins</a> and tokenized deposits are also anticipated to disclose the possible changes in the industry. 
Besides, other financial institutions and tech giants are also looking into the same blockchain applications, which is proof that digitalization and tokenization is on the rise in finance.
Read Also: <a href="https://coingape.com/markets/dogwifhat-price-forecast-reasons-why-wif-could-hit-5-may/#:~:text=Dogwifhat%20price%20forecast%3A%20WIF%20experiences,for%20a%20breakout%20to%20%245." rel="noopener noreferrer nofollow">Dogwifhat Price Forecast: Reasons Why WIF Could Hit $5 May?</a>
The post <a href="https://coingape.com/standard-chartered-and-mastercard-complete-first-tokenized-deposit-test/" rel="noopener noreferrer nofollow">Standard Chartered and Mastercard Complete First Tokenized Deposit Test</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Standard Chartered and Mastercard Complete First Tokenized Deposit Test

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