Mastercard (MA) has originated a program with the crypto trading platform Paxos to let financial institutions offer cryptocurrency trading to their buyers. The payment giant’s new program called Crypto Source will connect the crypto trading platform Paxos with banks.
Key Takeaways
- Mastercard has pitched a program to let financial institutions offer cryptocurrency trading to their customers.
- The payment giant will serve as a pass over between banks and Paxos, a crypto trading platform.
- The move could expand the adoption of crypto among the extensive population.
Paxos will handle custody and trading, while MasterCard will handle regulatory compliance and certainty. Through the “Crypto Source” program, users can buy, hold, and sell cryptocurrencies, complemented by Mastercard’s proprietary Crypto Safe solution. The payment giant will assist banks with crypto compliance rules, verify transactions, delay money laundering, and monitor identities. The program is expected to launch in Q4 of 2022.
“At Mastercard, trust is our business. What we are announcing today is a lashed approach to services that will help bring users safely and securely into the crypto ecosystem. Our latest investments in this space, such as the acquisition of CipherTrace and Ekata, are providing us with a unique set of capabilities to help supply our customers and consumers with the most technically advanced solutions available in the market,” said Ajay Bhalla, President, Cyber & Shrewdness at Mastercard.
Paxos offers similar services to PayPal, which launched crypto services in late 2020. The policy is known for providing blockchain infrastructure that allows other companies to offer crypto-related products and services.
Mastercard’s latest progressing comes a week after rival Visa announced a “long-term global partnership” with the FTX exchange and expanded its crypto debit new year cards to Asia, South America, and Europe. However, it has not entered the crypto world for the first time. Earlier this month, the payment monster introduced a service that allows issuers to assess the risk profile of cryptocurrency exchanges in order to make crypto stealing safer.