Financial services giant Mastercard has launched a new Web3 solution aimed at improving user verification standards and reducing the risk of bad actors in the digital asset space. The “Mastercard Crypto Credential” is a new solution that aims to secure transactions between users by verifying compliance with Mastercard standards. Users will receive a unique identifier that will enable them to confirm the vetting status of an address before sending funds, and in theory, reduce the risk of funds being lost.
On April 29, Mastercard announced the launch of its solution named the “Mastercard Crypto Credential”.
Partnerships with Crypto Wallet Providers and Blockchains
Mastercard has partnered with several crypto wallet providers, including Bit2Me, Lirium, Mercado Bitcoin, and Uphold. The company has also partnered with blockchain companies such as Aptos Labs, Ava Labs, Polygon Labs, and The Solana Foundation. The partnership will enable Mastercard to tap into CipherTrace’s suite of services, including CipherTrace Traveler, to verify addresses and support Travel Rule compliance for cross-border transactions.
Mastercard’s Push into the Crypto Sector
Mastercard has been increasing its exposure to the crypto sector in recent years. The latest announcement comes just weeks after it launched a non-fungible token (NFT) gated musician accelerator program in collaboration with Polygon. The program offers free access to materials, unique AI tools, and other experiences to holders of Mastercard’s Music Pass NFT.
Mastercard’s Crypto Credential Solution in Action
Mastercard’s Crypto Credential solution aims to help users verify that an address they want to send funds to has been vetted by Mastercard and has been operating in compliance with the firm’s standards. If bad actors slip through the cracks and obtain a unique identifier, Mastercard can quickly revoke their verification status if they have been found to have engaged in nefarious activity.
Visa’s Move into Stablecoin Payments
Mastercard competitor Visa also made a crypto move recently. Cuy Sheffield, the firm’s head of crypto, took to Twitter on April 24 to announce a new stablecoin payments-focused project. While details are sparse at this stage, Sheffield shared a job listing for the role that notes the company is “building the next generation of products to facilitate commerce in everyone’s digital and mobile lives.” The company is on the lookout for someone with strong experience in Web3 and blockchain tech.
Conclusion
Mastercard’s latest solution to combat bad actors in the crypto space is a positive development that could potentially reduce the risk of fraud and improve the security of transactions. The company’s partnerships with crypto wallet providers and blockchain companies, combined with its use of CipherTrace’s services, will help enhance the credibility of the solution. As more companies enter the crypto space, solutions like Mastercard’s Crypto Credential will become increasingly important.
