Mastercard to deliver crypto trading abilities to banks

In partnership with regulated and licensed crypto custody providers, Mastercard's financial institution partners will gain 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.

Mastercard’s crypto-related offerings for financial institutions include:

• Technology and partnership support to enable buy, hold, and sell of select crypto assets;

• Security management including Mastercard’s identity solutions, crypto analytics, transaction monitoring, anti-money laundering, ‘Know Your Business’ and lifecycle stages, cybersecurity, and biometrics;

• Crypto spend and cash out capabilities offered through a range of products, including crypto cards, Open Banking, and cross border services. Financial institutions would also be able to offer additional functionality using Mastercard’s technology such as digital receipts and loyalty solutions;

• Crypto programme management including programme design, product development and technology implementation, as well as go-to-market optimisation and marketing consultancy services, providing end-to-end support for banks, fintechs, and issuers to offer crypto programmes at scale.

Mastercard’s officials stated that their recent investments in this space, such as the acquisition of CipherTrace and Ekata, are providing them with a unique set of capabilities to help provide their customers and consumers with technically advanced solutions available in the market.

Enabling crypto trading though Paxos

To support this programme, Mastercard is expanding its partnership and work with Paxos Trust Company, a leading regulated blockchain infrastructure platform. The partnership aims for Paxos to provide crypto-asset trading and custody services on behalf of the banks, while Mastercard will leverage its technology to integrate those capabilities into banks’ interfaces, resulting in a seamless experience for the consumer. This offering developed by Paxos and Mastercard will give FIs a way to offer safe, reliable crypto access for their consumers. 

Over the past few years, Mastercard has been working alongside its customers and partners to bring new services and capabilities that help make crypto more accessible, safe, and secure. These efforts have been complemented with the addition of new technologies through Finicity, Ekata, RiskRecon, and CipherTrace. This unique combination of services provides eligible financial institutions the opportunity to directly manage crypto asset investments for consumers. Mastercard also continues to support banks, governments, and others through its Crypto & Digital Currencies Consulting Services.

Mastercard Crypto Source is currently being prepared for pilot programmes. Additional details on broader availability will be made available at a later date.