Top payment-processing corporation MasterCard has announced that it will bring crypto trading capabilities to banks through its new Crypto Source™ program.
According to the MasterCard announcement, the company is expanding its partnership with Paxos, the New York-based Fintech and blockchain company, to support its crypto program. Paxos will provide crypto trading and custody on behalf of the banks, while MasterCard will use its technology to bring these new services into the banks’ interfaces which will give customers a smooth experience.
MasterCard also stated in the press release the following as part of their crypto-related services:
- Technology and partnership support to enable buying, holding, and selling of select crypto assets
- Security management including Mastercard’s identity solutions, crypto analytics, transaction monitoring, anti-money laundering, ‘Know Your Business’ and lifecycle stages, cybersecurity, and biometrics
- Crypto spending and cash-out capabilities are offered through a range of products, including crypto cards, open banking, and cross-border services. Financial institutions would also be able to offer additional functionality using Mastercard’s technology such as digital receipts and loyalty solutions
- Crypto program management including program design, product development, and technology implementation, as well as go-to-market optimization and marketing consultancy services, providing end-to-end support for banks, fintech, and issuers to offer crypto programs at scale (Mastercard, Oct 17, 2022)
This new product is just one of several blockchain services being undertaken by MasterCard. The company has just recently launched Crypto Secure, a security solutions platform that allows card issuers to safely process crypto purchases without worrying about regulatory compliance. In August 2022, MasterCard partnered with Binance to bring cryptocurrency cards to Argentina.
MasterCard’s effort can be seen as very bullish despite the bearish sentiment hounding the crypto and traditional financial markets. The financial giant is trying to eliminate issues that are holding back banks and financial institutions from fully accepting cryptocurrencies.
Banks have always been wary of regulatory hurdles that they might encounter while engaging in crypto transactions. While customers have always been worried if using crypto is safe. A global survey by Harris Poll and MasterCard found that more than half of the 35,040 respondents are pessimistic about the value of digital assets. Consumers are also worried about stability and 59% agree that they would feel more confident if crypto assets were issued or backed by banks. About 63% agree that government regulation is needed.
MasterCard has seen these apprehensions and has systematically launched projects to address these issues. The company’s name alone should be able to convince a lot of consumers about crypto’s legitimacy.
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