The financial services giant hopes to make cryptocurrencies more attractive by handling security and regulatory support.
MasterCard’s new Crypto Source program was announced this morning. / adobe stock
MasterCard has announced Crypto Source, a new program designed to help financial institutions offer cryptographic services to their clients.
The program was created in partnership with a cryptocurrency trading platform called Paxos (now also used by PayPal), hoping to bring more banks into the crypto industry. MasterCard focuses primarily on security and regulatory compliance, while Paxos provides wealth management and transaction services.
“Our commitment is simple: explore crypto and its underlying digital asset technology to support consumer payment choices,” MasterCard Chief Digital Officer Jorn Lambert said in a statement. “Today marks an exciting step in our crypto journey, leveraging the strengths of our global business, from open banking and identity verification to analytics, fraud monitoring and payment solutions. We are excited to jointly innovate to bring safe and secure technology to financial institutions.Our crypto product innovations provide massive choice and new advanced services to our customers. It continues to bring unparalleled opportunities to financial institutions seeking to serve.”
Many banks have refrained from offering crypto services due to the complex regulatory issues involved. With its new initiative, MasterCard appears to be acting on the belief that banks will feel less hesitant if they can get some regulatory help.
The brand is also betting that Crypto Source will encourage customers of these banks to accept more cryptocurrencies. It was provided by a financial institution,” Lambert told CNBC.
The crypto industry has been going through something of a PR crisis lately. “Crypto Winter” has cost some cryptocurrency brands and investors billions of dollars, and a series of recent high-profile hacks have highlighted a high degree of vulnerability within a still-mature industry. Did.
MasterCard also recently signed a deal with Coinbase. The deal will allow Coinbase customers to purchase using his MasterCard debit and credit cards on his NFT platform going forward.
According to MasterCard’s statement, Crypto Source is “currently preparing for a pilot program.”
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