Blockchain
Mastercard has announced the launch of a service that ensures transactions between crypto users’ wallets are verifiable and compliant.
Mastercard is launching a new product, the “Mastercard Crypto Credential”, to improve user authentication standards and reduce the risk of fraud in the crypto world. Mastercard Crypto Credential ensures secure transactions between users that Mastercard has verified.
To achieve this, users are provided with a “Mastercard crypto credential unique identifier” that allows them to instantly verify that an address they wish to send money to has been verified by the company and is operating in accordance with Mastercard’s standards.
The payment processing giant said in a statement:
Mastercard Crypto Credential will establish a set of common standards and infrastructure that will help confirm trusted interactions between consumers and businesses using blockchain networks. There are several use cases that Mastercard Crypto Credential can unlock, as consumer and business verification needs vary widely based on market and compliance requirements.
Mastercard Crypto Credential uses technology from CipherTrace, a blockchain analytics platform that Mastercard plans to acquire in 2021.
The new service ensures that transactions between users’ wallets are verifiable and compliant and starts with cross-border transactions.
Raj Dhamodharan first announced Mastercard Crypto Credentials at Consensus 2023 where he said:
“If two people want to transfer value from one country to another, the level of compliance and verification required is complex.” Add: “So how do you identify those wallets. And how do you exchange enough information about the other party?”
Mastercard partnered with wallet providers Bit2Me, Lirium, Mercado Bitcoin and Uphold to roll out the service. The payments giant and its partners are currently working on a project to facilitate transfers between the United States, Latin America and the Caribbean corridors.
Disclaimer: This article is for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.
