A closer look at the application reveals plans for the development of downloadable application programming interface (API) software that has the ability to verify interactions using blockchain networks and processing or exchanging cryptocurrencies. The API software is also capable of linking virtual asset service providers (VASPs) to streamline crypto transactions.
According to u.today, Mastercard is looking to develop a mechanism that would support the exchange of consumer metadata between financial institutions for compliance purposes. According to the same source, in February 2021, Mastercard revealed its plans to support some cryptocurrencies, and it then proceeded to partner with Wirex, BitPay and crypto exchange LVL to create a series of cryptocurrency cards.
In the same year, Mastercard announced its intention to acquire CipherTrace, which is a cryptocurrency intelligence company. The plan was to build on CipherTrace’s suite of digital assets and Mastercard’s cyber security solutions to provide businesses with transparency to help identify and understand their risks and to help manage their digital asset regulatory and compliance obligations. At the time of writing, Mastercard is the holder of several blockchain patents and has blockchain applications pending around the world.
Mastercard introduced Crypto Source in October 2022. At the time Crypto Source represented a new programme designed to enable financial institutions to bring crypto trading capabilities and services to customers.
In collaboration with regulated and licensed crypto custody providers, Mastercard's financial institution partners gained access to a comprehensive suite of buy, hold, and sell services for select crypto assets, augmented with proven identity, cyber, security, and advisory services. This Crypto Source offering is complemented by Mastercard Crypto Secure to bring additional security to the crypto ecosystem and support card issuers in their compliance with complex regulations.
The 2022 Mastercard New Payments Index reported that 29% of respondents globally hold cryptocurrency as an investment, with another 65% indicating a preference for crypto-related services to be provided by their current trusted financial institution.
In May 2023, Mastercard collaborated with several Web3 partners to launch crypto credentials in an effort to improve the reliability of crypto transactions. Mastercard Crypto Credential was designed to aid developers, companies, and individuals to realise the full potential of powering payments, commerce, and economic value across borders and on-chain. Some of the main partners that worked with Mastercard on this product launch included crypto wallet providers Bit2Me, Lirium, Mercado Bitcoin, and Uphold.
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