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MasterCard Announces new API for their Permissioned Blockchain

by on October 20, 2017
 

MasterCard has always been one of the most remarkable companies in all of finance. While always second behind Visa, the company provides some innovative solutions. They have also been working on blockchain technology through in-house development. Earlier today, the company announced this blockchain will be opened to the public through API access. This is good news for banks and retailers willing to experiment with DLT.

It is good to see more financial service providers focus on blockchain. Most people know MasterCard has been working on DLT solutions for some time now. However, most of this technology has been kept under tight wraps. There are around 35 patents associated with their in-house technology as of right now. Moreover, the company is also an investor in Digital Currency Group. MasterCard is firing on all cylinders in this regard.

An Interesting Decision by MasterCard

Things are changing rapidly in the world of blockchain, though. Even MasterCard acknowledges the winds of change. By making an API to let developers and banks connect to their DLT platform, an interesting situation is created. A lot of new applications will be built, or that is what the company hopes, at least. It is not the first time the company takes such a measure They opened three provisional APIs back in October 2016.

MasterCard Labs EVP Ken Moore states:

“By combining Mastercard blockchain technology with our settlement network and associated network rules, we have created a solution that is safe, secure, auditable and easy to scale. When it comes to payments, we want to provide choice and flexibility to our partners where they are able to seamlessly use both our existing and new payment rails based on the needs and requirements of their customers.”

This new permissioned ledger API will attract a lot of attention. For now, the focus is on the B2B segment, but things may change over time. There is no link between DLT and card payments for the time being, though. Instead, there is a strong focus on payments and trade finance transactions. An interesting future awaits for MasterCard and their distributed ledger. Only time will tell how things play out in this regard.

Header image courtesy of Shutterstock

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