Mastercard (NYSE: MA) has achieved a significant milestone in the digital transaction sector by tokenizing Central Bank Digital Currencies (CBDCs) on multiple blockchain networks. This accomplishment was made possible through a collaboration with Cuscal, Mintable, and the Reserve Bank of Australia (RBA). The platform, which enables authorized users to interact with CBDCs following rigorous KYC procedures, demonstrated its capabilities on Friday. In a live demonstration, a pilot CBDC holder successfully purchased an NFT on Ethereum’s public blockchain using “allow-listed” Ethereum wallets and the NFT marketplace smart contract.
This development highlights Mastercard’s ability to oversee public blockchain networks and facilitate the rapid transfer of digital currencies within its ecosystem. The beta-phase Multi-Token Network, launched in June 2023, integrates the Mastercard Crypto Credential and offers exceptional interoperability across different blockchain platforms. The project underscores the vast potential of NFTs and envisions a future with reduced fraud and document loss.
On Thursday, Mastercard, RBA, and the DFCRC’s CBDC pilot project introduced a mechanism for seamless interoperability with various blockchain networks, enhancing consumer security and convenience. Developed in partnership with Cuscal and Mintable, this solution enforces strict controls to limit access to authorized entities only. A live demonstration showcased the acquisition of an NFT on Ethereum using the pilot CBDC. This process involved locking an equivalent amount on RBA’s platform and generating wrapped CBDC tokens on Ethereum through the approved wallets of the buyer, seller, and the NFT marketplace smart contract.
Mastercard’s Multi-Token Network is currently undergoing global trials with selected financial institutions. This allows regulatory bodies to leverage digital assets and expand the use of blockchain technology in various payment scenarios through Mastercard’s trusted network.
