In order to help financial institutions offer secure crypto trading capabilities and services to their clients, Mastercard Inc. has introduced a new initiative called Crypto Source.
The "Crypto Source" program, which combines Mastercard's exclusive Crypto Secure solution for further security and compliance, with the ability to buy, hold, and trade cryptocurrencies, enables consumers to do so. The technology will purportedly go live in Q4 2022 in collaboration with Mastercard's current partner, Paxos Trust Company.
Similar services are offered by Paxos, which competes with PayPal, a leader in worldwide payments that debuted its first cryptocurrency services in late 2020.
As part of the new cooperation, Paxos will handle custody and trading of cryptocurrency assets on behalf of the banks, and Mastercard will use its technology to build crypto trading capabilities into bank interfaces.
In order to give financial institutions access to a full range of purchase, hold, and sell services for a select few crypto assets, along with proven identity, cyber, security, and advisory services, Mastercard said it has worked with regulated and licensed crypto custody providers. In order to strengthen the crypto ecosystem's security and assist card issuers in adhering to onerous rules, the program is supplemented by Mastercard Crypto Secure.
According to Mastercard, its new initiative offers the following crypto-related services to banks and fintech:
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Support from partnerships and technology to facilitate the purchase, holding, and sale of specific crypto assets
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Capabilities for spending and withdrawing cryptocurrency are provided by products like crypto cards, open banking, and cross-border services.
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Program management for cryptocurrencies, encompassing product development, technological implementation, and go-to-market planning, as well as marketing consulting services
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Mastercard's identity services, crypto analytics, transaction monitoring, anti-money laundering, "Know Your Business" and lifecycle stages, cybersecurity, and biometrics are all part of the security management system.
"What we are announcing today is a connected approach to services that will help bring users safely and securely into the crypto ecosystem," Ajay Bhalla, president of cyber and intelligence at Mastercard said. "Our recent investments in this space, such as the acquisition of CipherTrace and Ekata, are providing us with a unique set of capabilities to help provide our customers and consumers with the most technically advanced solutions available in the market."
"Mastercard has a powerful network of financial institutions around the world. This exciting offering developed by Paxos and Mastercard will give FIs the fastest and most trusted way to offer safe, reliable crypto access for their consumers globally. We're thrilled to partner with Mastercard to further accelerate the mainstream adoption of digital assets," Walter Hessert, Head of Strategy at Paxos said.
