Key points:
- Mastercard unveils program allowing bank’s clients to offer cryptocurrency trading
- The payments titan will validate transactions and assist banks in obeying compliance rules
- Mastercard to bridge between Paxos and banks
Mastercard is taking steps in order to bring cryptocurrency trading to the mass market by making it far easier for banks to become involved in the decentralised finance markets. In a partnership with Paxos, security and regulatory compliance will enable banks to offer crypto trading t their clients.
Mastercard unveils program allowing bank’s clients to offer cryptocurrency trading
On Monday, the payments giant Mastercard (MA) announced a partnership with Paxos, a crypto trading platform, in offering a program that will support financial institutions in offering cryptocurrency trading to their clients. Monikered the Crypto Source program, the collaboration will verify transactions, assist banks to follow crypto compliance legislation, plus facilitating identity monitoring and provide anti-money-laundering services.
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The payments titan will validate transactions and assist banks in obeying compliance rules
Two of the main reasons that banks name in avoiding the cryptocurrency asset class are regulatory compliance and security. The partnership between Mastercard and Paxos will handle these services.
In an interview with CNBC, Jorn Lambert, Mastercard’s chief digital officer, stated, “There’s a lot of consumers out there that are really interested in this, and intrigued by crypto, but would feel a lot more confident if those services were offered by their financial institutions,” adding “It’s a little scary to some people still.”
Lambert declined to say which banks so far have signed up.
Mastercard to be a bridge between Paxos and banks
Mastercard is setting up to act as a “bridge” between banks and Paxos, the crypto trading platform already being used by PayPal. The product will be piloted in the first quarter of 2023, then “crank the handle” to expand in more geographies.
Mastercard had already teamed up on Non-Fungible Tokens (NFTs) with Coinbase, whilst Visa has already engaged in a partnership with FTX in offering crypto debit cards in 40 countries and has over 70 partnerships in the cryptocurrency space.
