Mastercard and Standard Chartered Pilot Tokenised Deposits and Carbon Credits

Mastercard and Standard Chartered pilot tokenised deposits and carbon credits in a groundbreaking proof-of-concept, highlighting the future of tokenisation in finance.

Mastercard and Standard Chartered have launched a groundbreaking proof-of-concept (PoC) pilot to explore the use of tokenised deposits and tokenised carbon credits. This collaboration includes Standard Chartered’s Hong Kong digital bank, Mox, and asset tokenisation technology firm Libeara. The pilot was conducted within the Hong Kong Monetary Authority’s Fintech Supervisory Sandbox.

The pilot marks the first live test of the Mastercard Multi-Token Network (MTN). In the test scenario, a Mox client aims to purchase a carbon credit to offset their personal carbon footprint and deposit the funds into their bank account. Here’s how the process works:

  1. Request for Tokenisation: Mox requests Standard Chartered to tokenise the desired carbon credit using Libeara’s technology.
  2. Tokenisation of Deposit: The client’s deposit is also tokenised via the Mastercard MTN.
  3. Atomic Swap: An atomic swap is initiated between the tokenised deposit and the tokenised carbon credit.

This seamless process results in a transparent, real-time transaction between Standard Chartered and Mox. The end client gains access to a tokenised version of their carbon credit, which can be stored in a digital wallet or used to offset their carbon footprint.

Mary Huen, CEO of Standard Chartered Hong Kong, highlighted the significance of this development: “The tokenisation of real-world assets and the potential use of different forms of tokenised currency is integral to the future of the financial industry.”

The success of this pilot underscores the potential for tokenisation technology to revolutionise financial transactions, providing enhanced transparency and efficiency while supporting sustainable practices.