Mastercard announced this week the payments giant wants to make cryptocurrencies accessible more widely. The company acts as a bridge between the crypto trading platform Paxos and the supporting banks.
Mastercard will help interested financial institutions offer crypto trading by providing regulatory and security compliance for the credit card giant. Regulation in particular is often cited by banks as a reason to avoid the new asset class. Mastercard's Chief Digital Officer specified that surveys show constant demand for the asset. In this regard, more than 60% of respondents said they would prefer to do business through their existing banks. The new program is called Crypto Source and is available immediately to financial institutions and customers.
Mastercard is betting on cryptocurrencies
Mastercard's financial institutions will receive proven identity, cyber, security and advisory services through the company's acquisitions. They will also gain access to a comprehensive range of buy, hold and sell services for select crypto assets. These will be offered in conjunction with the leading regulated blockchain infrastructure platform, Paxos, and are expected to result in a seamless consumer experience.
"What we are announcing today is a connected approach to services that will help users securely enter the crypto ecosystem. Our recent investments in this space, such as the acquisition of CipherTrace and Ekata, give us a unique set of capabilities to provide our customers and consumers with the most technically advanced solutions on the market." - Ajay Bhalla, President, Cyber & Intelligence at Mastercard.
To support this program, Mastercard is expanding its partnership with Paxos Trust Company. Their regulated blockchain infrastructure platform has quickly become an integral part of digital asset distribution. The company is leveraging its payments infrastructure expertise to help a growing number of businesses add digital assets to their repertoire.
Easy access to digital assets
On behalf of the banks, Paxos provides the underlying crypto trading and custody services. Meanwhile, Mastercard is using its technology to integrate these services directly into banks' interfaces. FinTechs are offered a range of interesting products. In addition to crypto issuances and withdrawals, crypto cards, open banking, and cross-border services are available to them with ease.
"Our commitment is simple: to explore cryptocurrencies and the underlying technology to support consumer choice in payments. Today is an exciting step in our crypto journey, building on the strengths of our global businesses, from Open Banking and identity verification to analytics, fraud monitoring and settlement solutions." - Jorn Lambert, Chief Digital Officer at Mastercard
