Mastercard Launches Program to Help Banks Offer Crypto Trading

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The multi­na­tion­al finan­cial ser­vices com­pa­ny Mas­ter­card is all set to launch a pro­gram to help finan­cial insti­tu­tions offer cryp­tocur­ren­cy trad­ing to their clients.

The com­pa­ny plans to serve as a “bridge” between the cryp­to trad­ing plat­form Pax­os and banks to over­see reg­u­la­to­ry com­pli­ance and secu­ri­ty – two major areas that the banks have cit­ed as rea­sons to avoid the asset class.

Focus on Regulatory Compliance

Mastercard’s chief dig­i­tal offi­cer, Jorn Lam­bert, told CNBC:

“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. It’s still scary for some peo­ple out there.”

The com­pa­ny said it will help finan­cial insti­tu­tions to fol­low cryp­to com­pli­ance rules, ver­i­fy trans­ac­tions, adhere to anti-mon­ey-laun­der­ing laws, and iden­ti­ty mon­i­tor­ing ser­vices. It expects to pilot the prod­uct in the first quar­ter of 2022, then expand in more geo­gra­phies across the world. Details regard­ing which banks have signed up so far have not been yet revealed.

The cryp­to indus­try is cur­rent­ly caught in one of the most bru­tal bear mar­kets in its 13-year his­to­ry. How­ev­er, Lam­bert expects to see more activ­i­ty in the near term, which could help Mas­ter­card fetch more trans­ac­tions and accel­er­ate its core busi­ness. The exec said that it would be “short-sight­ed” to believe that cryp­to win­ter indi­cates the end of the entire asset class.

While vouch­ing for reg­u­la­to­ry over­sight, Lam­bert went on to add that cryp­to plat­forms will not only enjoy a “high­er degree of secu­ri­ty” but will also see many issues to resolve in the years to come.

Mastercard’s Initiatives in Crypto Space

Mas­ter­card announced sev­er­al new cryp­to card pro­grams glob­al­ly this year. The com­pa­ny col­lab­o­rat­ed with Gem­i­ni for a cred­it card that pays rewards in cryp­tocur­ren­cies in the US. In Argenti­na, it rolled out a pre­paid card with Binance that lets users pur­chase and pay bills with their cryp­tocur­ren­cy at more than 90 mil­lion mer­chants that use Mastercard’s pay­ment services.

Over the last cou­ple of years, Mas­ter­card has part­nered with key indus­try play­ers such as Pax­os, Cir­cle, Evolve and Uphold to devel­op ways for users to effec­tive­ly con­vert their cryp­to to fiat to make payments.

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