- Mastercard’s newly launched Multi-Token Network (MTN) aims to offer secure and efficient transactions within the digital asset and blockchain ecosystems.
- The initial phase will leverage ‘tokenized bank deposits,’ suggesting the network might not necessarily incorporate mainstream cryptocurrencies.
Mastercard recently unveiled its revolutionary Multi-Token Network (MTN), signaling a significant move into the realm of digital assets and blockchain. Although the system appears to be aligned with blockchain operations, the current plans seemingly steer clear of direct cryptocurrency engagements.
Raj Dhamodharan, Mastercard’s head of crypto and blockchain, articulated the company’s vision for the MTN. According to Dhamodharan, the aim is to deliver foundational capabilities that make transactions within digital asset and blockchain ecosystems secure, scalable, and interoperable. This in turn could expedite efficient payment and commerce applications.
Interestingly, Mastercard seems to have hinted towards some projects involving public blockchains. However, there’s no explicit confirmation on whether mainstream cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) will be supported on the MTN platform.
Diving deeper into the MTN’s early operations, it appears that its immediate applications will be unrelated to traditional cryptocurrencies. The first phase of the beta, scheduled for this summer in the U.K., will reportedly be driven by “tokenized bank deposits.” Furthermore, the MTN intends to incorporate “regulated payment tokens” within financial applications.
In this context, the reference to “applications” seems to hint at fiat bank deposits, encapsulated as blockchain tokens, rather than conventional cryptocurrency tokens.
Dhamodharan, in a separate interview with Fortune, touched upon a more extensive scope of MTN beyond merely dealing with bank deposits. An “app store” approach was mentioned, where blockchain developers could leverage a set of tools for their purposes. However, the timeline for a public app store featuring these applications remains uncertain.
While Dhamodharan acknowledged that the MTN could facilitate consumer-to-consumer payments, he emphasized that the platform aims to explore avenues beyond this. For instance, MTN could handle payments for Non-Fungible Tokens (NFTs) representing “any asset”—likely referring to tokenized real-world items rather than popular crypto collectibles.
Furthermore, the MTN is expected to provide access to Mastercard’s private version of Ethereum, distinctly separate from the public Ethereum chain. Considering MTN’s overarching goals of trust and verification, it seems the network is primarily designed for semi-traditional financial applications—at least initially.
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