MasterCard, the leading payment network company, has announced a new programme for financial institutions that would make it simpler to provide cryptocurrency trading and custody services to their customers, allowing them to focus on supporting their merchants and retail customers.
According to CNBC, the programme was designed in partnership with Paxos, a blockchain technology startup located in New York. Paxos will be in charge of facilitating cryptocurrency trading, and Mastercard will be in charge of compliance and security. These are the two primary concerns that generally prevent financial institutions from getting involved in cryptocurrency. Paxos and Mastercard will work together to address these concerns. Mastercard is going to take care of regulatory compliance, which means the company will make sure that financial service providers do not violate complex requirements.
The security management system provided by the firm enables customers to monitor transactions and set policies designed to prevent money laundering. The 2022 Mastercard New Payments Index found that nearly a third of respondents now hold cryptocurrency. This is not the first time that MasterCard and Paxos have worked together. The global leader in financial services has begun converting digital currency into fiat currency by utilising the stablecoin issuance infrastructure provided by Paxos.
According to Walter Hessert, head of strategy at Paxos, the new service makes it feasible for financial institutions to sell cryptocurrencies in the “quickest and most trustworthy” method imaginable.
Additionally, at the beginning of October, Mastercard introduced a new cryptocurrency assessment instrument known as Crypto Secure. This tool uses technology developed by the blockchain security startup CipherTrace, which Mastercard had acquired in 2021. In October of 2018, Mastercard entered into a partnership with the business Bakkt to facilitate the incorporation of cryptocurrencies into the services offered by financial institutions. Jorn Lambert, chief digital officer of Mastercard, claims that people who are sceptical about cryptocurrencies are more open to the innovative asset if it is made available by traditional financial institutions.
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