Mastercard (MA) has launched a program with the crypto trading platform Paxos to let financial institutions offer cryptocurrency trading to their customers. The payment giant's new program called Crypto Source will connect the crypto trading platform Paxos with banks.
- Mastercard has launched a program to let financial institutions offer cryptocurrency trading to their customers.
- The payment giant will serve as a bridge between banks and Paxos, a crypto trading platform.
- The move could expand the adoption of crypto among the general population.
Paxos will handle custody and trading, while MasterCard will handle regulatory compliance and security. Through the "Crypto Source" program, users can buy, hold, and sell cryptocurrencies, complemented by Mastercard's proprietary Crypto Secure solution. The payment giant will assist banks with crypto compliance rules, verify transactions, prevent money laundering, and monitor identities. The program is expected to launch in Q4 of 2022.
“At Mastercard, trust is our business. What we are announcing today is a connected approach to services that will help bring users safely and securely into the crypto ecosystem. Our recent investments in this space, such as the acquisition of CipherTrace and Ekata, are providing us with a unique set of capabilities to help provide our customers and consumers with the most technically advanced solutions available in the market,” said Ajay Bhalla, President, Cyber & Intelligence at Mastercard.
Paxos offers similar services to PayPal, which launched crypto services in late 2020. The platform is known for providing blockchain infrastructure that allows other companies to offer crypto-related products and services.
Mastercard's latest move comes a week after rival Visa announced a "long-term global partnership" with the FTX exchange and expanded its crypto debit cards to Asia, South America, and Europe. However, it has not entered the crypto world for the first time. Earlier this month, the payment giant introduced a service that allows issuers to assess the risk profile of cryptocurrency exchanges in order to make crypto buying safer.