Mastercard Launches Multi-Token Network (MTN) to Connect Traditional Finance and Digital Assets

Mastercard plans to establish a blockchain-based Multi-Token Network (MTN) to connect financial institutions and digital assets through a single network.

Mastercard is making significant strides in the blockchain domain with its plan to launch a Multi-Token Network (MTN), connecting financial institutions and digital assets through a single network.

The initiative, spearheaded by Mastercard Executive Vice President of Blockchain and Digital Assets Raj Dhamodharan, aims to establish an MTN system that enables users to seamlessly move digital assets across markets. The technology platform is designed to achieve the same transactional efficiency as platforms like Venmo or Zelle, which have come to dominate traditional banking markets.

Connecting Traditional Finance with Blockchain Technology

Mastercard’s new Multi-Token Network positions the company as a key infrastructure provider in the blockchain sector. The company leverages its vast worldwide payment infrastructure to create links between traditional cash-based systems and digital cryptocurrency networks, facilitating seamless exchange between the financial domains. According to Dhamodharan, blockchain integration with traditional finance unlocks the potential for new business models that enhance financial processing efficiency.

The proposed initiative comes as financial institutions are intensifying their research into blockchain technology applications. Mastercard is building a regulatory-compliant platform alongside a simple consumer interface to ensure that blockchain implementation adheres to regulatory guidelines. This initiative will facilitate smoother adjustments for both businesses and consumers during the transition.

Strategic Partnerships with Leading Financial Institutions

Mastercard has partnered with financial giants like JPMorgan and Standard Chartered to explore blockchain use cases in international payments, tokenized deposits, and carbon credit transactions. Moreover, by forging industry alliances, Mastercard is advancing its role in blockchain operations.

Through the Multi-Token Network institutions can link up with digital assets and execute processes such as cross-border transactions that typically require several days to complete. In November 2024, Mastercard, in partnership with JPMorgan, successfully sped up cross-border payment processing while ensuring constant service availability throughout the year. This achievement implements Mastercard’s mission to build a frictionless global financial network.

Blockchain Adoption through Consumer and Institutional Channels

Mastercard is also working to broaden consumer adoption of digital assets. Moreover, the company operates more than 100 crypto-focused card programs, which have reached over 3.5 billion worldwide cardholders, to enable seamless digital asset interaction. By connecting cryptocurrency with everyday spending, Mastercard aims to bridge traditional and digital finance, enabling cardholders to make transactions and receive crypto rewards just like regular cash.

Mastercard continues its institutional tokenization efforts by developing blockchain-based solutions for money market and treasury funds, which are becoming more accessible on the blockchain. Through its February 2025 agreement, Mastercard is collaborating with Ondo Finance to introduce institutional financial assets onto blockchain networks, ultimately accelerating industrial blockchain adoption.