MasterCard has launched Crypto SourceTM to enable financial institutions to offer customers secure crypto-trading capabilities.

 It has been reported by the 2022 Mastercard New Payments Index that 29% of respondents have cryptocurrency as an investment, and another 65% prefer to deal with their current financial institution for crypto-related services.

 With Mastercard’s partnership with crypto custody providers, financial institution partners will be able to purchase, hold, and sell select crypto assets, as well as receive proven identity, cyber, security, and advisory services. Additionally, Mastercard Crypto SecureTM provides additional security to the crypto ecosystem and supports card issuers in complying with complex regulations.

 Among Mastercard’s crypto-related offerings for banks and fintechs are:

• Technology and partnership support to enable buy, hold and sell of select crypto assets
• Security management including Mastercard’s identity solutions, crypto analytics, transaction monitoring, anti-money laundering, ‘Know Your Business’ and lifecycle stages, cybersecurity, and biometrics
• Crypto spend and cash out capabilities offered through a range of products, including crypto cards, open banking and cross border services. Financial institutions would also be able to offer additional functionality using Mastercard’s technology such as digital receipts and loyalty solutions
• Crypto program management including program design, product development and technology implementation, as well as go-to-market optimization and marketing consultancy services, providing end-to-end support for banks, fintechs and issuers to offer crypto programs at scale

“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,” Ajay Bhalla, President of Cyber & Intelligence at Mastercard, stated.

 In order to support this initiative, Mastercard is strengthening its relationship and collaboration with Paxos Trust Company, a preeminent regulated blockchain infrastructure platform. In order to give customers a seamless experience, the cooperation calls for Paxos to offer custody and trading services for cryptoassets on behalf of the banks, while Mastercard will use its technology to incorporate such capabilities into the bank interfaces.

 “Our commitment is simple – to explore crypto and the underlying digital assets technology to support consumer choice in payments. Today is an exciting step in our crypto journey that draws on the strengths of our global businesses, from open banking and identity verification to analytics and fraud monitoring to settlement solutions. We’re excited to build on our long-term partnership with Paxos – co-innovating to bring safe and secure technology to financial institutions. Our crypto product innovations will provide choice at scale and continue to bring one-of-a-kind opportunities to financial institutions as they seek to offer new, advanced services to their customers,” Chief Digital Officer of Mastercard, Jorn Lambert, said.

 Over the past few years, Mastercard has been working alongside its customers and partners to bring new services and capabilities that help make crypto more accessible, safe and secure. These efforts have been complemented with the addition of new technologies through Finicity, Ekata, RiskRecon and CipherTrace. This unique combination of services provides eligible financial institutions the opportunity to directly manage crypto asset investments for consumers. Mastercard also continues to support banks, governments and others through its Crypto & Digital Currencies Consulting Services

Currently, pilot programs for Mastercard Crypto Source are being planned. At a later time, further information about expanded availability will be made available.