Along with 15 other participants, Mastercard has completed the Hong Kong Monetary Authority’s (HKMA) e-HKD Pilot Programme, designed to investigate use cases across payments and digital assets.

Mastercard’s Multi-Token Network solution, introduced in June 2023, was applied to use cases in settling Web3 transactions related to decentralised applications and digital assets, such as non-fungible tokens (NFTs).

The program also highlighted the “potential for seamless funding and settlement in and out of Web3 marketplaces via a retail central bank digital currency (CBDC), such as e-HKD in the future”, Mastercard said.

In the pilot, Mastercard’s Multi-Token Network modelled the full timeline of the hypothetical e-HKD throughout the minting, distribution, spend and redemption phases.

“What’s exciting about this pilot is that it demonstrated the ability to use digital currencies across multiple platforms, as well as the potential to utilise existing commercial bank rails to drive overall adoption,” Sandeep Malhotra, Executive Vice President, Products & Innovation, Asia Pacific at Mastercard, said.

“It also showcased how aspects of the Mastercard Multi-Token Network could potentially be used to solve real-world pain points. In this case, we explored the safe and secure purchase of a physical luxury item with an associated NFT that represents its certificate of authenticity from an unknown party.”

“Based on the outcomes and learnings of the e-HKD pilot, Mastercard looks forward to continuing to support the HKMA, and other central banks, as they explore how CBDCs can be integrated with existing ways to pay, making it easier for consumers and businesses to transact in the Web3 economy, while maintaining monetary policy and financial stability.”

The Mastercard Multi-Token Network is the organisation’s “set of foundational capabilities” to make payments and commerce applications more efficient using blockchain technology. One of these capabilities, Mastercard Crypto Credential, provides common verification standards to improve secure interactions and interoperability. using blockchain networks.