IOT : TOKENISATION

deposit balances , facilitate rapid cross-border transfers within private or permissioned public blockchains established by approved bank consortiums .

The cross-border token transfer process follows a precise sequence . A party initiates a fund transfer by substituting monetary value with a unique token .

This token transmits across a secure network to the receiving party , who redeems it for equivalent value in local currency . Critical transaction data , including KYC / AML compliance details , remain securely logged on the network and available to authorised parties .

This streamlined approach operates continuously , unaffected by traditional banking hours and time zone differences .

As such , the cryptocurrency industry has matured significantly . After several high-profile failures removed unreliable players , the sector has become more stable .

As digital assets became more accessible to regular investors , traditional financial institutions like mutual funds started paying attention .

These developments highlighted that the mainstream financial system , which still handles most of the world ’ s money , values trustworthiness , clear rules and smooth integration between services .

This explains why Mastercard ’ s Multi- Token Network ( MTN ) has gained significant traction .

The MTN makes digital asset transactions more reliable , able to

Individual remittance fees reach up to

handle large volumes , and compatible across different systems . It provides the groundwork for banks and other regulated financial institutions to safely experiment with blockchain technology and digital assets .

While still in the testing phase in certain countries , it aims to help blockchain adoption grow while maintaining the security standards of established financial systems .

In 2024 , the network achieved important milestones by successfully testing with Standard Chartered Bank and connecting with JPMorgan ’ s Kinexys platform .

Mastercard has developed other specific initiatives to advance tokenisation adoption .

The Mastercard Digital Enablement Service , launched in 2014 , provides an integrated platform for issuers , wallet providers and merchants to enable digitisation of supported card types across payment methods .

The service supports end-to-end services with the reliability and global reach of the Mastercard network .

70 February 2025