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Mastercard supports self-custodial crypto wallets

Friday 6 September 2024 13:16 CET | News

Mastercard is expanding its support for non-custodial cryptocurrency wallets through a collaboration that allows users to spend crypto stored via self-custody.

 

After launching a pilot crypto debit card with the self-custodial MetaMask wallet in August 2024, Mastercard has partnered with the European crypto payments infrastructure provider Mercuryo to introduce a new euro-denominated debit card. This card enables users to spend cryptocurrencies, such as Bitcoin, stored on self-custodial wallets at over 100 million merchants within the Mastercard network.

The concept of self-custody in cryptocurrency involves storing digital assets without relying on centralized entities like banks or exchanges. In self-custodial wallets, users are solely responsible for securing their funds by managing their private keys. This is in contrast to custodial wallets, where a third party holds the private keys on behalf of the user.

 

Mastercard representatives noted that the collaboration with Mercuryo reflects Mastercard's commitment to supporting self-custodial wallets. The company aims to bridge the gap between blockchain-based assets and traditional payment systems, offering consumers a way to use their digital assets in the Mastercard network.

Mastercard’s crypto journey

Mastercard, established in 1966 and headquartered in the United States, operates in over 210 countries and territories, providing various financial services. Its venture into the cryptocurrency market aligns with the growing role of digital currencies in the payments ecosystem. Since announcing support for cryptocurrencies on its network in February 2021, Mastercard has formed partnerships with several crypto industry players, including USD Coin provider Circle and crypto exchange Coinbase.

The company’s recent moves to enable crypto spending through self-custody wallets aim to simplify the process of buying and selling digital assets without relying on centralized exchanges. Mastercard's blockchain and digital asset lead, Raj Dhamodharan, indicated that this approach addresses challenges associated with traditional exchange-based crypto transactions, which some users prefer to avoid.

The new Mastercard-branded Spend card, developed in partnership with Mercuryo, includes various fees such as a 1.6 euro issuance fee, a 1 euro monthly maintenance fee, and an off-ramp fee of 0.95%.

Source: Link


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Keywords: e-wallet, cryptocurrency, digital assets, blockchain, virtual card
Categories: DeFi & Crypto & Web3
Companies: Mastercard
Countries: World
This article is part of category

DeFi & Crypto & Web3

Mastercard

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