Mastercard Partners with US Banks for Shared-Ledger Technology Trial

Mastercard Partners with US Banks for Shared-Ledger Technology Trial

Elena Cruz
2 min read

Mastercard's Partnership with Major US Banks to Test Shared-Ledger Technology Signals Groundbreaking Shift in Financial Sector

Mastercard has unveiled a collaboration with several prominent US banks, including JP Morgan and Citi Group, to assess shared-ledger technology for settling tokenized assets. This innovative approach involves leveraging the Regulated Settlement Network (RSN), designed to facilitate the collective settlement of tokenized assets such as treasury and funds from commercial banks. The primary objective of this experiment is to enhance cross-border transactions by converting these assets into tokens and settling them via a distributed ledger. Notably, this initiative represents an expansion of a prior trial that commenced in 2022 and includes participants like Wells Fargo, Swift, and USDF. According to Raj Dhamodharan, Head of Blockchain and Digital Assets at Mastercard, the utilization of ledger technology could be a game-changer for the financial sector.

Key Takeaways

  • Mastercard collaborates with major US banks, including JP Morgan, Citi Group, and Visa, to evaluate shared-ledger technology for settling tokenized assets.
  • The partnership involves the utilization of the Regulated Settlement Network (RSN) to facilitate the collective settlement of tokenized assets, such as treasury and commercial banks' funds.
  • RSN strives to convert these assets into tokens and settle them on a distributed ledger, thereby enhancing cross-border transactions.
  • This initiative builds on a 2022 trial and now encompasses approximately 10 financial institutions, including Wells Fargo, Swift, TD Bank N.A., U.S. Bank, USDF, and Zions Bancorp.
  • The adoption of ledger technology has the potential to revolutionize the financial landscape, allowing for 24/7, seamless, and programmable settlements.


The partnership between Mastercard and major US banks to explore shared-ledger technology for tokenized assets represents a significant transformation within the financial industry. This development is poised to elevate the efficiency of cross-border transactions, potentially disrupting traditional settlement systems. The integration of distributed ledger technology could bring about advantages for financial institutions such as Visa, Wells Fargo, and Swift, enabling 24/7, frictionless, and programmable settlements.

Nations and regulatory entities may need to adapt to these changes, considering the potential circumvention of existing cross-border payment systems facilitated by this technology. Conversely, crypto assets and stablecoins like USDF could witness increased legitimacy and recognition. Over time, this collaboration could foster heightened synergy among technology firms, banks, and financial institutions in the exploration of blockchain and digital assets.

However, it is imperative to address potential risks, encompassing security, privacy, and regulatory considerations, to ensure the successful implementation and adoption of this technology.

Did You Know?

  • Shared-Ledger Technology: This form of distributed ledger technology (DLT) involves multiple parties possessing a copy of the ledger and partaking in transaction validation. It enables decentralized and transparent recording and verification of transactions, diminishing the requirement for intermediaries while heightening efficiency.
  • Regulated Settlement Network (RSN): Mastercard has developed this network to facilitate the collective settlement of tokenized assets on a distributed ledger. Tokenized assets, being real-world assets converted into digital tokens, can be settled swiftly and efficiently. By utilizing RSN, financial institutions can settle tokenized assets in a secure and regulated environment, thereby enhancing cross-border transactions.
  • Tokenized Assets: These denote digital representations of real-world assets, encompassing treasury and funds from commercial banks. Through their conversion into tokens, these assets can be settled on a distributed ledger, fostering faster and more efficient transactions. Tokenization can also bolster the liquidity and accessibility of these assets, as they can be traded and settled 24/7 in a programmable and frictionless manner.

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