Mastercard announced the launch of a service that will ensure transactions between crypto users’ wallets are verifiable and compliant.
Mastercard will launch a new product, the “Mastercard Crypto Credential,” to improve user verification standards and reduce the risk of fraud in the crypto space. Mastercard Crypto Credential will provide secure transactions between users Mastercard has verified.
To achieve this, users will be issued a “Mastercard crypto credential unique identifier” that will enable them to immediately verify if an address they want to send money to has been verified by the company and operates in compliance with Mastercard’s standards.
The payment processing giant said in a statement:
Mastercard Crypto Credential will establish a set of common standards and infrastructure that will help attest trusted interactions among consumers and businesses using blockchain networks. There are several use cases that Mastercard Crypto Credential can unlock, as consumer and business verification needs vary widely based on market and compliance requirements.
Mastercard Crypto Credential employs technology from CipherTrace, a blockchain analytics platform Mastercard agreed to acquire in 2021.
The new service will ensure transactions between users’ wallets are verifiable and compliant and begins with cross-border transactions.
Raj Dhamodharan first announced Mastercard Crypto Credentials at Consensus 2023, where he said:
“If two people want to transfer value from one country to another country, the level of compliance and verification needed is complex.” Adding, “So how do you identify those wallets. And how do you exchange enough information about the other party?”
Mastercard partnered with wallet providers Bit2Me, Lirium, Mercado Bitcoin and Uphold to roll the service out. The payments giant and its partners are currently working on a project to facilitate transfers between the United States, Latin America and the Caribbean corridors.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.