US Banks and Mastercard Test Ledger Tech for Settling Tokenized Assets – Institutional Adoption on the Rise?

cryptonews.com:

Payments giant Mastercard joined several leading U.S. banks on Wednesday to test new distributed ledger technology to enable tokenized asset settlement between its entities.

Financial giants, including JPMorgan, Citibank, and others, announced a proof-of-concept (PoC) for a Regulated Settlement Network (RSN) exploring the potential of shared ledger technology to make sending money across borders smoother.

Some of the tokenized assets circulating in the system will include commercial bank money, wholesale central bank money, and securities like U.S. treasuries and investment-grade debt – assets that trade on separate systems within the traditional financial system.

“The RSN PoC will be conducted in a test environment and will simulate multi-asset transactions in U.S. dollars,” read the banking group’s press release. “The PoC aims to highlight opportunities to improve the operation of multi-asset settlements for domestic users of financial instruments denominated in U.S. dollars.”

Back in 2022, Mastercard announced a twelve-week PoC to test tokenized US dollar commercial bank transfers settled through “simulated central bank reserves on a shared multi-entity distributed ledger.” The company’s new work builds on the former project to enable multi-asset settlement on a programmable digital ledger.

JUST IN: