Mastercard's "blockchain app store" beta launch deepens its crypto push

By: Mark Jessy

Mastercard's "blockchain app store" beta launch deepens its crypto push

July 2, 2023 1:20 AM

The credit card company is anticipated to deploy the product's beta version this summer.

In its latest blockchain effort, Mastercard announced on Wednesday that it will launch a prototype version of its Multi-Token Network (MTN) this summer.

The product was supposed to be released as a beta test in the United Kingdom. 

In a letter sent on Wednesday, Raj Dhamodharan, Mastercard's head of crypto and blockchain technologies, stated that MTN will "act as a testbed for developing live pilot solutions and use case with financial companies, fintech, and central banks."

The objective is to expand MTN to more worldwide markets when additional partners become available. The concept is predicated on convincing developers to build atop Mastercard's permissioned blockchain, which the corporation has positioned as capable of changing its payment capabilities. 

Mastercard has promoted invitations to the MTN Innovation Sprint. Teams will be chosen to gain access to MTN's capabilities and start developing on the platform. 

According to Fortune→, developers will be incentivized to design applications on Mastercard's permissioned Ethereum-based blockchain. 

According to Dhamodharan, the initial iteration of such apps will be fueled by "tokenized bank deposits."

Tokenized bank deposits are becoming more popular among central banks and commercial banks such as JPMorgan Chase.

MTN will also use Mastercard Crypto Credential, the company's transaction verification service. Dhamodharan put pen to paper.

At its launch, the tool was intended to enable aliases to facilitate the exchange of wallet addresses, while employing metadata to define wallet properties. The configuration is intended to prevent unwanted transactions from taking place.  

In the statement, Mastercard underlined the importance of "safe transfers of tokens and assets." This follows huge exploits such as the $200 million Euler attack in March and the $160 million Wintermute hack. 

Mastercard has collaborated with numerous cryptocurrency exchanges, including Binance, Bit2Me, Bitso, and Bybit, to provide debit or prepaid cards that allow customers to make transactions with their digital assets.