Tag - DeFi Tokens

Mastercard, in collaboration with top U.S. banks including JPMorgan and Citibank, initiated a testing phase on Wednesday for a new distributed ledger technology aimed at streamlining tokenized asset settlements across its network. This venture introduces the Regulated Settlement Network (RSN), a shared ledger technology designed to consolidate the settlement of diverse financial assets on a single platform. RSN: A Collaborative Effort to Modernize Financial Transactions The RSN project involves an alliance between significant financial institutions and payment processors. It seeks to simplify the cross-border transfer of funds and enhance the fluidity of domestic financial transactions. This effort is part of a broader movement towards the integration of blockchain technologies within mainstream financial operations, which promises to revolutionize how assets like U.S. treasuries and investment-grade debts—traditionally handled through disparate systems—are traded and settled. This proof-of-concept (PoC) will test the feasibility of converting various financial assets into tokenized forms and settling them via a distributed ledger. The network's design allows for the seamless handling of commercial bank money, wholesale central bank money, and securities. The current testing phase, set to simulate multi-asset transactions in U.S. dollars, builds on a 12-week pilot that commenced in late 2022, initially focusing on tokenized US dollar commercial bank transfers. The PoC aims to demonstrate potential enhancements in the operation of multi-asset settlements for entities using financial instruments denominated in U.S. dollars. With this setup, assets that have previously operated on separate systems can be transacted more efficiently on this unified platform. Broad Industry Participation in the RSN Trial Other key participants in this trial include MITRE Corporation, BNY Mellon, Broadridge, the DTCC, ISDA, Tassat Group, Visa, Swift, TD Bank N.A., U.S. Bank, USDF Consortium, and Wells Fargo. Notably, the USDF Consortium and the Tassat Group are taking on significant roles, with the former engaging as a direct participant and the latter contributing to the interbank tokenized deposit networks. Additionally, consulting giant Deloitte is providing advisory services, while the Securities Industry and Financial Markets Association manages the program. Moreover, the Federal Reserve Bank of New York is involved as a technical observer, aiming to glean insights into how regulated financial transfers can be conducted using distributed ledger infrastructure. The concept of real-world asset tokenization is gaining traction among financial leaders. Despite skepticism from figures like JPMorgan CEO Jamie Dimon, who has been critical of decentralized cryptocurrencies like Bitcoin, the financial industry recognizes the substantial potential of blockchain technology. Dimon himself has acknowledged the significance of blockchain as a transformative tool for financial operations. The increasing interest in blockchain is also reflected in BlackRock's recent launch of a tokenized asset fund called BUIDL, which swiftly attracted $240 million in investments. This fund issues BUIDL tokens that record share ownership on the blockchain, with investments primarily in stable assets such as cash, U.S. Treasuries, and repurchase agreements. RSN PoC: A Pioneering Initiative in Blockchain Adoption As the financial sector continues to explore the integration of blockchain technology, initiatives like the RSN PoC are pivotal in testing the practical applications of these innovations. Debopama Sen, Global Head of Payments at Citi Services, emphasized the importance of this project in creating more generalized venues for financial transactions, underscoring the sector's commitment to harnessing the efficiency and versatility of blockchain technology.

Tag - DeFi Tokens

Streamlining Cross-Border Payments: Mastercard and US Banks Test Tokenized Asset Settlements

Pantera Capital’s Liquid Token Fund Surges 66% in Q1 2024