Mastercard has joined forces with Standard Chartered to initiate a proof-of-concept pilot focused on tokenized deposits and carbon credits.
Collaborating with Mox, a digital bank owned by Standard Chartered, and asset tokenization technology firm Libeara, the pilot was conducted within the Hong Kong Monetary Authority’s Fintech Supervisory Sandbox. This effort represented the inaugural live trial of the Mastercard Multi-Token Network (MTN) in a scenario where a Mox client seeks to purchase a carbon credit to offset personal carbon emissions while depositing the corresponding funds into their bank account.
During the pilot, Mox requested Standard Chartered to tokenize the selected carbon credit via Libeara. Subsequently, utilizing the Mastercard MTN, the client’s deposit was also tokenized, initiating an atomic swap between the two instruments.
The outcome was a transparent and real-time transaction between Standard Chartered and Mox, enabling the client to access a tokenized version of their carbon credit. This digital asset may be stored in a digital wallet or utilized for offsetting their carbon footprint.
Mary Huen, CEO of Standard Chartered Hong Kong, stated, “The tokenization of real-world assets and the potential use of various forms of tokenized currency is pivotal for the future of the financial sector.”
For those interested in the latest advancements in sustainable finance, consider attending Finextra’s annual Sustainable Finance Live conference, scheduled for October 8, 2024.