Wednesday, 19 October 2022 15:55

Mastercard to offer cryptocurrency trading tools to banks

Written by Evelyn Alas

Mastercard today introduces Crypto Source TM, a new program that enables financial institutions to offer secure cryptocurrency trading tools and services to their customers.

Mastercard today introduces Crypto Source TM, a new program that enables financial institutions to offer secure cryptocurrency trading tools and services to their customers.

The 2022 Mastercard New Payments Index reported that 29% of global respondents hold cryptocurrency as an investment, with another 65% indicating a preference for cryptocurrency-related services to be provided to them by their current trusted financial institution.

In partnership with regulated and licensed cryptocurrency custody providers, Mastercard's financial institution partners will have access to a comprehensive suite of services for buying, holding and selling select cryptoassets, with trusted identity, cybersecurity and advisory services.

This Crypto Source offering is complemented by Mastercard Crypto Secure TM to bring additional security to the crypto ecosystem and support card issuers in their compliance with complex regulations.

Now, Mastercard's suite of cryptocurrency-related offerings for banks and fintechs includes:

Technology and partnership support enabling the purchase, holding and sale of certain cryptoassets.

Security management, including Mastercard's identity solutions, cryptocurrency analytics, monitoring, anti-money laundering, Know Your Business and lifecycle stages, cybersecurity and biometrics

Cryptocurrency and 'cash out' tools offered through a range of products, including crypto cards, open banking and cross-border services.

Financial institutions will also be able to offer additional functionalities using Mastercard technology, such as digital receipts and loyalty solutions.

Crypto program management, including program design, product development and technology implementation, as well as merchandising optimization and marketing consulting services, providing end-to-end support for banks, fintechs and issuers to deliver crypto programs at scale.

"At Mastercard, trust is our business. What we are announcing today is a connected approach to services that will help bring the next billion users securely into the crypto ecosystem. Our recent investments in this space, such as the acquisition of CipherTrace and Ekata, provide us with a unique set of tools that allow us to offer our customers and consumers the most technically advanced solutions available in the market", said Ajay Bhalla, president of Cyber and Intelligence at Mastercard.

To support this program, Mastercard is expanding its partnership and work with Paxos Trust Company, a leading, regulated blockchain infrastructure platform. The partnership aims for Paxos to provide cryptoasset trading and custody services on behalf of banks, while Mastercard will leverage its technology to integrate those capabilities into bank interfaces, resulting in a seamless consumer experience.

"Our commitment is simple: to explore cryptocurrencies and the underlying digital asset technology to support consumer choice in payments. Today we take an exciting step in our crypto journey that builds on the strengths of our global businesses, from open banking and identity verification to fraud analytics and monitoring and settlement solutions. We are excited to leverage our long-term partnership with Paxos, innovating together to deliver secure technology to financial institutions. Our cryptocurrency product innovations will provide options at scale and continue to offer unique opportunities for financial institutions looking to offer new and advanced services to their customers", said Jorn Lambert, Mastercard's chief digital officer.

"Mastercard has a powerful network of financial institutions around the world. This exciting offering developed by Paxos and Mastercard will provide financial institutions with the fastest and most reliable way to offer secure and reliable access to their consumers around the world. We are excited to partner with Mastercard to accelerate the widespread adoption of digital assets", said Walter Hessert, Chief Strategy Officer, Paxos.

In recent years, Mastercard has been working alongside its customers and partners to bring new services and tools to help make cryptocurrencies more accessible, safe and secure. These efforts have been complemented by the addition of new technologies through Finicity , Ekata , RiskRecon and CipherTrace.

This unique combination of services provides eligible financial institutions with the opportunity to directly manage cryptoasset investments for consumers. Mastercard also continues to support banks, governments and others through its Crypto and Digital Currency Consulting Practice.

Mastercard Crypto Source is currently in preparation for pilot programs. Additional details on broader availability will be released at a later date.

Learn more about crypto and blockchain from Mastercard.