Mastercard announced this Monday (17) that it will support banks to start their business with cryptocurrencies. The credit card company can be hired by interested institutions on request.
Many banks don’t allow their customers to trade cryptocurrencies because they don’t like dealing with new financial technology.
However, in Brazil and other countries, clients of these institutions look for these services and end up looking for brokers who deal in the brokerage of cryptocurrencies, withdraw funds from traditional financial institutions and channel their funds to competing fintechs.
This problem must be solved with the support of a large international company.
Mastercard creates product to bring cryptocurrency trading to banks
Mastercard announces the launch of Crypto SourceTMa new program that allows financial institutions to offer secure cryptocurrency trading tools and services to their customers.
The launch comes a few months after the company listened to banking customers, with 22% saying they already have cryptocurrencies as investments.
However, many investors want their own banks to offer cryptocurrency trading, and Mastercard has heard the pain of this niche customer.
Working with licensed and regulated cryptocurrency custodian providers, Mastercard’s financial institution partners have access to a comprehensive suite of services for buying, holding and selling select cryptocurrencies, complemented by proven identity, cyber, security and advisory services.
Crypto Source’s offering is complemented by Mastercard Crypto SecureTM to provide additional security for the crypto ecosystem and support card issuers in complying with complex regulations.
Since 2021, the company has already acquired a cryptocurrency tracking company to ensure a secure ecosystem of KYC transactions.
Like Mercado Pago and Nubank, Paxos will become a Mastercard partnership
Jorn Lambert, Digital Director at Mastercard, responsible for the presentation of the novelty, emphasized that the company will have the support of Paxos, which is already active in Brazil and supports the digital banks Mercado Pago and Nubank, in addition to the fintech PicPay.
“Our commitment is simple: to exploit cryptocurrencies and the underlying technology for digital assets to support consumer choice in payments. Today we take an exciting step in our crypto journey that builds on the strengths of our global businesses, from open banking and identity verification to fraud analysis and monitoring and settlement solutions. We are excited to build on our longstanding partnership with Paxos — innovating together to bring secure technology to financial institutions. Our crypto product innovations will open up options at scale and continue to provide unique opportunities for financial institutions to deliver new and advanced services to their customers.”
In recent years, Mastercard has been working with its customers and partners on new services and features that make crypto more accessible, safer and better. These efforts were complemented by the addition of new technologies through Finicity, Ekata, RiskRecon and CipherTrace.
This unique combination of services provides eligible financial institutions with the ability to directly manage cryptocurrency investments for consumers. THE Mastercard also continues to support banks, governments and others through its cryptocurrency and digital currency advisory practice..
Mastercard Crypto Source is being prepared for pilot programs, with more details to be released soon.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
