Mastercard and Ondo Finance have announced a partnership to provide tokenized real assets on the multi-token network, starting with U.S. Treasury securities.
Introduction to Mastercard's Multi-Token Network
Mastercard’s Multi-Token Network (MTN) is designed to streamline financial transactions by connecting banks and businesses in a unified digital environment. The addition of tokenized U.S. Treasury securities links private payment systems with public blockchains, the result of years of banking efforts to enhance efficiency using blockchain technology.
Ondo Finance's Role in Asset Tokenization
Ondo Finance has become the first provider of tokenized real assets on Mastercard's network. Their U.S. Treasury securities fund will be available on the MTN, enabling businesses to earn daily yield through tokenized assets. The integration removes the need for stablecoin onramps and facilitates liquidity management, including settlement through traditional banking infrastructure.
Benefits and Prospects of Integration
Mastercard's network approach to tokenized assets opens new possibilities for liquidity management and cross-border payments. The support for these assets provides businesses with alternative financial solutions. The fund includes holdings in BlackRock’s institutional digital liquidity fund and short-term treasuries managed by Franklin Templeton and WisdomTree.
The integration of Ondo Finance into Mastercard's multi-token network paves the way for innovative digital financial transactions with support for tokenized assets.
