To help banks provide their consumers with safe crypto trading options, Mastercard today launched a new program called Crypto SourceTM. According to the 2022 Mastercard New Payments Index, 29% of global respondents have cryptocurrency as an investment, and 65% would rather have their current trusted financial institution provide crypto-related services.
Mastercard’s banking and financial institution partners will have access to a full suite of buy, hold, and sell services for a variety of cryptocurrencies, as well as proven identity, cyber, security, and advisory services, thanks to the company’s collaboration with a number of licensed and regulated crypto custody providers. Mastercard Crypto SecureTM is a complementary solution to Crypto Source that helps ensure the safety of the crypto ecosystem and aids card issuers in adhering to rules.
Now, banks and fintech can choose from Mastercard’s selection of crypto-related products and services, which includes:
- The backing of technology and strategic alliances will facilitate the acquisition, storage, and sale of certain crypto assets.
- Security administration that takes into account Mastercard’s id solutions, crypto analytics, transaction monitoring, anti-money laundering, ‘Know Your Business’ and lifecycle stages, cybersecurity, and biometrics
- Products such as crypto cards, open banking, and cross-border services enable users to both spend and withdraw cryptocurrency. By adopting Mastercard’s technology, banks might provide services like digital receipts and loyalty solutions.
- End-to-end support for banks, fintech, and issuers to deliver scalable crypto programs, including but not limited to program design, product development, technology implementation, go-to-market optimization, and marketing advisory services.
“At Mastercard, trust is our business. What we are announcing today is a connected approach to services that will help bring users safely and securely into the crypto ecosystem. Our recent investments in this space, such as the acquisition of CipherTrace and Ekata, are providing us with a unique set of capabilities to help provide our customers and consumers with the most technically advanced solutions available in the market,” said Ajay Bhalla, President, Cyber & Intelligence at Mastercard.
Mastercard is strengthening its relationship and collaboration with Paxos Trust Company, an industry-leading regulated blockchain infrastructure platform, to facilitate this initiative. Through this partnership, Paxos will act as the banks’ go-to provider for cryptocurrency trading and custody services, while Mastercard will use its technological resources to seamlessly incorporate these features into the banks’ user interfaces.
“Our commitment is simple: to explore crypto and the underlying digital assets technology to support consumer choice in payments. Today is an exciting step in our crypto journey that draws on the strengths of our global businesses, from open banking and identity verification to analytics and fraud monitoring to settlement solutions. We’re excited to build on our long-term partnership with Paxos – co-innovating to bring safe and secure technology to financial institutions. Our crypto product innovations will provide choice at scale and continue to bring one-of-a-kind opportunities to financial institutions as they seek to offer new, advanced services to their customers,” said Jorn Lambert, Chief Digital Officer at Mastercard.
The payments giant announced on the 17th of October a new programme to help financial institutions to bring #crypto-tading services to their customers. #Mastercard will act as a “bridge” between #Paxos, and banks. the two companies will handle regulatory compliance and security. pic.twitter.com/UOw5fNcWyg
— lecocqassociate (@lecocqassociate) October 18, 2022
“Mastercard has a powerful network of financial institutions around the world. This exciting offering developed by Paxos and Mastercard will give FIs the fastest and most trusted way to offer safe, reliable crypto access for their consumers globally. We’re thrilled to partner with Mastercard to further accelerate the mainstream adoption of digital assets,” said Walter Hessert, Head of Strategy at Paxos.
Mastercard has spent the past few years collaborating with its customers and partners to develop new services and capabilities that make the use of cryptographic tokens easier, safer, and more secure. Finicity, Ekata, RiskRecon, and CipherTrace are some of the new technologies that have been implemented to supplement these efforts. With this special collection of offerings, qualified banks can manage customers’ crypto asset investments on their own. Mastercard’s Crypto & Digital Currencies Consulting Services are still available to financial institutions, governments, and others.
Preliminary pilots of Mastercard Crypto Source are now in the works. Details about wider availability will be provided at a later time.
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