Mastercard Multi-Token Network Completes First Live Test with SCBHK

Mastercard, in collaboration with Standard Chartered Bank Hong Kong (SCBHK), has successfully completed the first live test of its Multi-Token Network (MTN). The pilot, conducted as part of the Hong Kong Monetary Authority's (HKMA) fintech supervisory sandbox, involved the tokenization of carbon credits and their atomic exchange for cash.
Pilot Details
The pilot involved a customer of Mox Bank, SCBHK's virtual bank, depositing funds into a Mox account and requesting the purchase of a carbon credit. SCBHK, using the tokenization services of Libeara, a platform developed by the venture capital arm of Standard Chartered SC Ventures, tokenized the carbon credit. MTN then provided an atomic swap - an instantaneous exchange between different blockchains - between the tokenized deposit and the carbon credit.
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Launched in June 2023, MTN Mastercard runs on the company's private blockchain. Prior to this pilot, the network was tested by the Reserve Bank of Australia using the central bank's wrapped digital currency (CBDC) as well as the HKMA's e-HKD CBDC, although neither is currently operational.
Developmental Context
The HKMA has been urging Hong Kong banks, including SCBHK, to improve their cryptocurrency exchange services. SCBHK is actively participating in the HKMA's Ensemble project and the e-HKD pilot program, which began its second phase in March. In addition, SCBHK is participating in the mBridge multinational project to explore the use of CBDC outside the country.
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Outside Hong Kong, Standard Chartered is involved in various international projects, including working with SWIFT on CBDC and with U.K. Finance on a network of regulated liabilities. SC Ventures also launched a crypto fund in the United Arab Emirates in November.
Conclusion
Other banks are also testing similar technologies. In November, HSBC and China's Ant Group piloted tokenized deposit transactions in the HKMA sandbox using Ant Group's blockchain. HSBC also offers trading in bitcoin and Ethereum futures traded on an exchange in Hong Kong.