3 - 4 minute read
Mastercard has announced a new service that will increase trust in the crypto space by ensuring that transactions between users’ wallets are verifiable and compliant. The service, called Mastercard Crypto Credential, uses technology from CipherTrace, a blockchain analytics platform that Mastercard agreed to acquire in late 2021. The new service will allow wallets to be identified and transactions to be compliant with regulations such as the Financial Action Task Force (FATF) travel rule. The use case for the Mastercard Crypto Credential service will initially be for transfers of digital assets between countries.
Raj Dhamodharan, Head of Crypto and Blockchain at Mastercard, explained that cross-border transactions require a high level of compliance and verification, which can be complex. Therefore, identifying wallets and exchanging information about the other party is crucial. To roll out the new service, Mastercard has partnered with wallet providers Bit2Me, Lirium, Mercado Bitcoin, and Uphold. These firms are working on an initial project to enable transfers between the US and Latin America and the Caribbean corridors.
Mastercard’s new service will increase trust in the crypto space, which has been a focus of blockchain tracker CipherTrace, the creator of a cryptocurrency travel rule solution. The Mastercard Crypto Credential service uses a set of common standards for attestation of interactions, ensuring that transactions are compliant with regulations. The service aims to bring additional trust to the cryptocurrency space, making it easier for users to transfer value from one country to another.
Mastercard’s partnership with public blockchain network organizations such as Aptos Labs, Ava Labs, Polygon, and the Solana Foundation will enable more use cases like NFT transactions in the future. The Mastercard Crypto Credential service will ensure that these transactions are compliant with regulations, making them more secure and trustworthy for users.
The implications of Mastercard’s new service for traders are significant. The new service will increase trust in the crypto space, making it easier for traders to transfer value between different countries. This will increase the liquidity of the crypto market and potentially increase the value of digital assets. However, traders should remain cautious and monitor any potential risks associated with the new service.
The Bottom Line
Mastercard’s new service will increase trust in the crypto space, making it easier for users to transfer value between countries. The new service uses technology from CipherTrace and a set of common standards for attestation of interactions, ensuring that transactions are compliant with regulations. The partnership with public blockchain network organizations will enable more use cases like NFT transactions in the future. Traders should remain cautious and monitor any potential risks associated with the new service.
