Bank

Carbon

Standard

<p>Mastercard and Standard Chartered Bank Hong Kong (SCBHK) are breaking new ground. They’ve just wrapped up the first live trial of Mastercard’s Multi-Token Network (MTN), pulling off a proof-of-concept that tokenizes carbon credits right inside the Hong Kong Monetary Authority (HKMA) Fintech Supervisory Sandbox.<a href="https://x.com/metasgame9/status/1790316805036417462" rel="noopener noreferrer nofollow" target="_blank"> </a></p>
<h2 class="wp-block-heading" id="carbon-credit-tokenization-gets-popular">Carbon credit tokenization gets popular</h2>
<p>It all started with a customer at SCBHK’s digital arm, Mox Bank. The customer chucked some cash into Mox aiming to grab a carbon credit. Mox hit up SCBHK to get this credit tokenized. They used Libeara, a fresh face in tokenization services hatched by SCBHK’s own venture wing, SC Ventures.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Standard Chartered Hong Kong announced that it has completed proof-of-concept testing of tokenized deposits and tokenized carbon credits through the Hong Kong Monetary Authority’s regulatory sandbox with virtual banks Mox, Mastercard and Libeara. <a href="https://t.co/sbymKLd2yl" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/sbymKLd2yl</a></p>— metasgameOfficial (@metasgame9) <a href="https://twitter.com/metasgame9/status/1790316805036417462?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">May 14, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>With MTN in play, they managed to tokenize the deposit and pull off an atomic swap. That’s tech speak for swapping assets real-time across different blockchains. Neat, right?</p>
<p>Mastercard didn’t just cook up the MTN out of thin air. Launched in June 2023, it’s built on their own private blockchain.</p>
<p>Before this, they were busy running trials with the Reserve Bank of Australia using wrapped central bank digital currency (CBDC) and the HKMA with its e-HKD CBDC, though these CBDCs aren’t live yet.</p>
<p>Helena Chen, Mastercard’s boss for Hong Kong and Macau, put it straight. Mastercard’s all-in on pushing HK as a top spot for digital assets, backing HKMA’s push to juice up fintech and token biz in Hong Kong.</p>
<h2 class="wp-block-heading" id="hong-kong-has-been-with-crypto-regulations">Hong Kong has been with crypto regulations</h2>
<p>But it’s not just about fancy tech. The HKMA’s leaning hard on local banks, including SCBHK, to up their game serving crypto exchanges.</p>
<p>SCBHK’s also knee-deep in the HKMA’s Project Ensemble and the e-HKD pilot, not to mention their hand in the global Project mBridge. The e-HKD pilot kicked off its second stage this past March.</p>
<p>Beyond local shores, Standard Chartered’s been dabbling in CBDC projects with big names like SWIFT and U.K. Finance. Come last November, SC Ventures even launched a crypto fund over in the United Arab Emirates.</p>
<p>Now, about those rules. The Securities and Futures Commission (SFC) of Hong Kong laid down the law with a new set of rules for tokenized securities and other investment goodies in a circular dropped last November 2.</p>
<p>The demand for these tokenized products in <a href="https://www.cryptopolitan.com/hong-kong-universitys-test-ai-professors/" data-type="post" data-id="523125" rel="noopener noreferrer nofollow">Hong Kong</a>, boosted by blockchain perks, spurred the SFC to sketch out some public guidelines on how to handle the securities and futures markets via tokenization.</p>
<p>This circular outlined a dozen key points but zeroed in on four biggies: the setup for tokenization, what you tell folks about it, who intermediates, and how competent the staff are.</p>
<p>They’re pretty bullish on letting the market rip with SFC-okayed tokenized products, provided they tick all regulatory boxes and add extra layers to cover any risks.</p>
<p>And for those out there using public blockchains without permission? The SFC’s got a word of advice: beef up your controls.</p>
<p>They expect providers to own their tokenized products fully, keep tight records, and show they’ve got their operational act together.</p>

Mastercard and Standard Chartered HK Tokenize Carbon Credits

Table of Contents

Cryptopolitan_News

Other articles published on May 15, 2024

CodeXchain Enters into a Strategic Partnership with RWA Inc.

Decentralization Unleashed: How Mask Network is Rethinking Social Media and Privacy

Pepe Power! Meme Coin Surges On Back Of GameStop Nostalgia

Bitget Wallet Unveils Roadmap for Onchain Layer and $10 Million Web3 Fund

The IMF sees the dollar give way to other reserve currencies

Trending Polygon (MATIC) Competitor Trading Under $0.01 Could See a 5000% Bull Move by the End of...

Join our free newsletter for daily crypto updates!