Mastercard Joins Forces with Paxos to Launch Bank-Facing Crypto Trading Service
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Mastercard has partnered with blockchain infrastructure giant Paxos to launch a crypto trading service, especially for financial institutions.
Crypto Source Is Compliant-Friendly
In a press release, Mastercard announced the launch of Crypto Source – a service meant to provide a more regulatory-friendly pathway for banks to interface with the crypto industry.
According to the US-based fintech firm, Crypto Source would enable financial institutions to provide crypto trading services for the ever-growing crowd of interested customers. Meanwhile, the new offering is expected to complement its newly launched Crypto Secure service, which aims to bring security and trust into the hack-prone crypto space.
Mastercard says Crypto Source would cater to regulatory compliance as well as security, thereby allowing banks to fully focus on providing a rich crypto trading experience to their customer base. For now, Crypto Source would grant financial institutions access to a rich suite of buy, sell, and hold services, amplified with proven user identity, security, and advisory services.
The payment giant says it is not making the move alone, as it would be partnering with Paxos. The blockchain payment firm would be tasked with the responsibility of providing crypto asset trading as well as custody services for the network of banks. Mastercard would lean on its rich technology stack to implement bank-like transaction interfaces, making it easier for everyday users to buy and sell Bitcoin and other cryptocurrencies.
Elaborating on its recent steps and the reason behind them, Chief Digital Officer Jorn Lambert noted that the company’s crypto innovations are targeted at providing choice at scale and opening new service opportunities and options for banks to remain in touch with current realities through advanced services.
Mastercard has been one of the standout unicorn tech companies that have taken a deep dive into the crypto space in the last few years. It has expanded its canopy into several sections of the blockchain-driven industry and recently acquired blockchain analytical firm, CipherTrace. Other notable partnerships are with Finicity, Ekata, and RiskRecon.
Crypto Source is currently in its pilot stage and is expected to become fully active in the coming months.
The fintech firm has attributed its bullish position to a recent survey carried out this year. The Mastercard New Payment Index revealed that 29% of those surveyed held digital assets, while a further 69% stated their preference for crypto services provided by regular financial institutions.
Mastercard Is Not Done Yet
The growing penetration of legacy-based financial tech firms in the crypto space has become something of a novel occurrence. However, Mastercard’s recent bullish push has not been without a real-life check.
Mastercard’s rival, Visa, has been making moves as well. According to a recent announcement, the payment giant has partnered with the popular centralized crypto exchange FTX. The collaboration would see Visa offer crypto users debit cards in over 40 countries, with a major focus on the Latin American landscape.
The cards are expected to directly link to an investor’s FTX crypto trading account, providing a near-instant trading experience for crypto enthusiasts. This way, they can spend their digital currencies without leaving the crypto trading platform.
FTX and Visa to launch crypto debit card worldwide https://t.co/OU599TQdWx by @DsHollers pic.twitter.com/toUzL6gmB0
— Yahoo Finance (@YahooFinance) October 7, 2022
Meanwhile, Visa has previously enjoyed the benefits of offering crypto access to its millions of customers. In an earnings call, CEO Al Kelly noted that the company processed about $2.5 billion in crypto-related transactions by the close of its 2021 calendar. This shows real promise and has further encouraged the company to provide more services targeted at the new financial landscape.
Mastercard has kept in rhythm. The company has so far launched crypto spend and cash out services, security management, crypto program management, and its buy, hold, and sell support.
Impact Project for Climate Change
Given the penetration of real-world services and solutions, more companies are leaning on blockchain technology to tackle nutty global challenges. The newly launched Impact Project is the protocol making waves in the climate change space.
Based on the newly transitioned Ethereum proof-of-stake (PoS) chain, Impact Project enables individuals to purchase carbon credits to offset their carbon emissions. Aside from this, Impact Project would be launching a shopping hub where investors can use minted non-fungible tokens (NFTs) from its platform to purchase climate-friendly products and services.
The project is currently undergoing a presale stage for its IMPT token. So far, the protocol has raised over $5 million, pointing to strong investor interest. For now, early-bird investors can buy the “greenest cryptocurrency” for $0.018, with the second phase putting this a bit higher at $0.023.
To get in on a potentially explosive project, visit the presale website.
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