Mastercard (MA) has launched a program with the cryptocurrency trading platform Paxos, which allows financial institutions to exchange cryptocurrencies with their clients. The payment giant's new program, called CryptoSource, will connect the Paxos cryptocurrency trading platform with banks.
Key results
- MasterCard has launched a program that allows financial institutions to exchange cryptocurrencies with their customers.
- The payment giant will act as a bridge between the bank and Paxos, a cryptocurrency trading platform.
- This move could expand the adoption of cryptocurrencies to the general public.
Paxos will manage storage and trading, while MasterCard will manage compliance and security. Through the Crypto Source program, users can buy, store and sell cryptocurrencies complemented by MasterCard's own Crypto Secure solution. The payment giant will help banks with crypto compliance, transaction verification, money laundering prevention and identity monitoring. The program is expected to launch in the fourth quarter of 2022.
“At MasterCard, trust is our business. Today we are announcing a connected service approach that will help you securely engage users in the crypto ecosystem. Our recent investments in this area, such as the acquisition of CipherTrace and Ekta, give us a unique set of capabilities to help provide our clients and consumers with the most advanced technology solutions available on the market," said Ajay Bhalla, President of Cyber. and intelligence in MasterCard.
Paxos offers services similar to PayPal, which launched crypto services in late 2020. The platform is known for providing a blockchain infrastructure that allows other companies to offer cryptocurrency-related products and services.
MasterCard's latest move comes a week after the company announced a "long-term global partnership" with Visa rival FTX Exchange and expanded its cryptocurrency debit card to Asia, South America and Europe. However, this is not the first time that he has ventured into the world of cryptocurrencies. Earlier this month, the payment giant launched a service that allows issuers to assess the risk profile of crypto exchanges to make crypto purchases more secure.