The two financial titans collaborated on the Proof of Concept, which was conducted on the Fintech Supervisory Sandbox of the Hong Kong Monetary Authority, with Standard Chartered-owned Hong Kong digital bank Mox and asset tokenization software company Libeara.

In a test scenario where a Mox client wishes to purchase a carbon credit to offset personal carbon usage and deposit the money for this into their bank account, it witnessed the first live test of the Mastercard Multi-Token Network (MTN).

In the pilot, Mox asks Standard Chartered to use Libeara to tokenize the desired carbon credit. Subsequently, the client's deposit is tokenized using the Mastercard MTN, and an atomic swap between the two instruments is started.

As a result, Standard Chartered and Mox are able to transact in real time and transparently, and the end client can get a tokenized version of their carbon credit. They can use this to mitigate their carbon footprint or store it in a digital wallet.

"The tokenization of real-world assets and the potential use of different forms of tokenized currency is integral to the future of the financial industry," states Mary Huen, CEO of Standard Chartered in Hong Kong.