Mastercard Incorporated
Method and system for net settlement of withheld funds via blockchain

Abstract:

A method for minimizing inter-bank settlement through incremental updates stored via blockchains includes storing three blockchains: a balance blockchain updated periodically that includes an available balance for a plurality of blockchain wallets, a credit blockchain that includes credits made to a blockchain wallet, and a debit blockchain that includes payments made from the blockchain wallet. Holds are placed on related transaction accounts to enable the blockchain wallets to utilize payments made thereto without the need for a transaction account, where the holds are only updated when necessary based on periodic updates to the balance blockchain, thus minimizing settlements performed by the issuing institutions, thus reducing inter-bank settlements and enabling payees to receive payments from a transaction account without their own.