Mastercard Launches Crypto Trading Services To Banks

In order to help financial institutions offer secure crypto trading services and features to their clients, Mastercard recently announced Crypto SourceTM, a new program.

According to the 2022 Mastercard New Payments Index, 29% of respondents worldwide hold cryptocurrencies as investments, and another 65% said they preferred their existing reputable financial institution to offer services connected to cryptocurrencies.

Mastercard’s financial institution partners will have access to a full range of purchase, hold, and sell services for a selection of crypto assets, as well as proven identity, cyber security, and consulting services, through partnerships with regulated and licensed crypto custody operators.

In order to strengthen the crypto ecosystem’s security and assist card issuers in adhering to stringent rules, this Crypto Source solution is complemented by Mastercard Crypto SecureTM.

The current range of crypto-related services offered by Mastercard to banks and fintechs is as follows:

  • Technology support and partnership assistance to facilitate the buying, holding and selling of specific crypto assets
  • Security management on identity solutions,transaction monitoring,  crypto analytics, anti-money laundering, cybersecurity, biometrics,‘Know Your Business’ and lifecycle stages
  • Crypto spend and cash out feature available on various products, such as crypto cards, open banking and cross border services. Financial institutions can offer extra functionality using Mastercard’s technology, including loyalty solutions and digital receipts
  • Management of crypto program such as program design, go-to-market optimization,  product development, technology implementation, marketing consultancy services, and end-to-end support for banks, fintechs and issuers

Mastercard is broadening its collaboration with Paxos Trust Company, a top regulated blockchain technology provider, in support of this project. In order to give customers a satisfying experience, the alliance calls for Paxos to offer custody and trading services for cryptoassets on account of the banks, while Mastercard will use its technology to incorporate such features into the bank interfaces.

Eligible financial institutions now have the option to manage customer investments in crypto assets directly thanks to this special mix of services. Through its Crypto & Digital Currencies Consulting Services, Mastercard also keeps assisting banks, governments, and other organizations.

Pilot programs for Mastercard Crypto Source are presently being established. At a later time, further information about expanded availability will be provided.

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