Mastercard Introduces New Cryptocurrency Program for Financial Institutions

Mastercard has announced a new program for financial institutions that will make it easier for them to provide cryptocurrency trading and custody services to their clients. According to CNBC, the program was created in collaboration with the New York-based blockchain technology company Paxos.

Paxos will be in charge of facilitating cryptocurrency trading, while Mastercard will handle compliance and security, the two major issues that typically prevent financial institutions from dabbling in cryptocurrency. Mastercard will handle regulatory compliance, ensuring that financial institutions do not violate complex rules.

Mastercard will handle regulatory compliance, ensuring that financial institutions do not violate complex rules. Clients can use the company’s security management solution to monitor transactions and implement anti-money laundering policies.

According to the 2022 Mastercard New Payments Index, nearly a third of respondents own cryptocurrencies. There has long been a relationship between Mastercard and Paxos. The massive financial services company began converting cryptocurrency to fiat using Paxos’ stablecoin issuance platform.

The new offering enables financial institutions to offer cryptocurrencies in the “fastest and most trusted” manner, according to Walter Hessert, head of Strategy at Paxos. Early in October, Mastercard also unveiled Crypto Secure, a new cryptocurrency evaluation tool that makes use of CipherTrace’s technology. CipherTrace was purchased by the financial leader in 2021.

To enable banks to incorporate cryptocurrency into their offerings, Mastercard joined forces with the cryptocurrency firm Bakkt in October of last year. According to Jorn Lambert, the chief digital officer at Mastercard, those who are skeptical of cryptocurrencies are more receptive to the novel asset if it is provided by established financial institutions.

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