May 28, 2023

News 24a

News that matters

Mastercard will test cryptocurrency trading through banks

Mastercard is preparing to pilot Crypto SourceTM, a new global program that enables financial institutions to provide customers with secure crypto trading options and services.

The New Payment Index 2022 report shows that 29% of global respondents invest in cryptocurrencies, and another 65% prefer cryptocurrency services to be provided by their current trusted financial institution.

In partnership with regulated and licensed cryptocurrency providers, Mastercard partner financial institutions will have access to an extensive suite of buying, storing and selling services for certain crypto assets, complemented by identity verification, cyber security and advisory services. The Crypto Source offering is complemented by Mastercard Crypto SecureTM, which strengthens the security of the crypto ecosystem and supports card issuers to comply with complex regulations in this field.

Currently, Mastercard’s suite of cryptocurrency offerings for banks and fintechs includes:

· Technologies and support for buying, storing and selling certain crypto assets.
· Security solutions, including Mastercard solutions for identity confirmation, cryptocurrency analysis, transaction monitoring, anti-money laundering, Know Your Business and support throughout the stages of a business life cycle, cyber security and biometrics.
· Cryptocurrency payment and collection options offered through a wide range of products, including crypto cards, open banking services and cross-border payment services. Financial institutions will also be able to offer additional functionality using Mastercard technology, such as digital receipts and loyalty programs.
· Crypto program management, including program design, product development and implementation of technology solutions, as well as optimization and marketing consulting services, thereby ensuring full support for banks, fintechs and issuers to deliver large-scale crypto programs.

“For Mastercard, trust is a fundamental principle. Today’s announcement is a connected approach to services that will help to safely include the next billion users in the crypto ecosystem. Our recent investments in this area, such as the acquisition of CipherTrace and Ekata, give us a unique set of options that help us provide our clients and consumers with the most advanced technical solutions available in the market,” said Ajay Bhalla, President, Cyber ​​& Intelligence , MasterCard.

To support this program, Mastercard is expanding its partnership and scope of collaboration with Paxos Trust Company, a leading regulated blockchain infrastructure platform. The partnership sees Paxos provide crypto-asset trading and custody services on behalf of banks, while Mastercard will use its technology to integrate these options into bank interfaces, resulting in a seamless consumer experience.

“Our commitment is simple – to explore crypto technology and related digital assets to support consumers in their payment choices. This day marks an important step in our crypto journey, which builds on the strengths of our global businesses, from open banking and identity verification to fraud analytics and monitoring, to settlement solutions. We are excited to strengthen our long-standing partnership with Paxos – innovating together to make the most secure technology available to financial institutions. Our innovations in crypto products will provide choices at scale and continue to bring unique opportunities to financial institutions looking for new and modern services for their customers,” said Jorn Lambert, Chief Digital Officer, Mastercard.

“Mastercard has a strong network of financial institutions around the world. The offering developed by Paxos and Mastercard will provide financial institutions with the fastest and most reliable way to provide consumers with secure access to cryptocurrencies globally. We are excited to partner with Mastercard to further accelerate the mass adoption of digital assets,” said Walter Hessert, Head of Strategy, Paxos.

In recent years, Mastercard has worked alongside its customers and partners to develop new services and options that help increase the accessibility, safety and security of cryptocurrencies. These efforts were complemented by the addition of new technologies through Finicity, Ekata, RiskRecon and CipherTrace. This unique combination of services gives eligible financial institutions the ability to directly manage crypto-asset investments for consumers. Mastercard also continues to support banks, governments and more through its Crypto and Digital Currency Advisory Practice.

Mastercard Crypto Source is currently being prepared for pilot programs. Further details regarding availability will be announced at a later date.

Source link