Mastercard, Citibank, JPMorgan Chase partner to test shared ledger technology

Golden Finance reports that Mastercard is working with some of the largest banks in the United States to test shared ledger technology that will allow the joint settlement of commercial bank currencies as well as tokenized assets such as Treasury bills and investment-grade debt securities. The regulated settlement network proof-of-concept will simulate U.S. dollar transactions, Mastercard said in a statement. The goal is to make cross-border and system transactions faster and easier, and reduce the chance of errors and fraud. Ledger technology has the potential to dramatically change the way the financial world operates today. Currently, securities such as commercial bank funds, wholesale central bank funds, and investment-grade debt all reside in separate systems. However, once these assets are converted into tokens that run on a distributed ledger, they can be settled on the same system.