Mastercard Introduces Program for Holding Cryptocurrencies at Banks
Mastercard introduced a new program to enable financial institutions to conduct crypto trading and make them benefit from its services.
Called “Crypto Source,” Mastercard’s program, launched in partnership with Paxos Trust Company, a prominent regulated blockchain infrastructure platform, will allow users to buy, sell and hold cryptocurrencies.
Expected to be launched in the fourth quarter of 2022, Paxos, through Crypto Source, will offer crypto-based trading and custody services on behalf of the banks, while Mastercard will use its technologies to integrate these services into the bank’s interfaces to provide a smooth experience for the consumers.
According to the 2022 Mastercard New Payments Index, 29% of those who hold cryptocurrency see it as an investment, while 65% preferred to get crypto-related services from their current trusted financial institution.
President of Cyber and Intelligence at Mastercard Ajay Bhalla said the new program will make the users feel safe and secure in the crypto ecosystem.
Bhalla mentioned that Mastercard has a growing interest in the crypto market, pointing to his company’s acquisition of Etaka in April last year and CipherTrace in September this year.
Meanwhile, Head of Strategy at Paxos Walter Hessert hailed the strength of Mastercard’s network of financial institutions around the world, clarifying that the partnership would give these institutions the fastest and most trusted way to provide safe, dependable crypto access for their consumers worldwide.
Crypto Source is currently being prepared for pilot programs. Any additional details on wider availability will be announced later.
It is not the first time for Mastercard to collaborate with firms related to crypto and blockchain matters. In January 2022, Mastercard cooperated with the Coinbase exchange to allow users of the Coinbase NFT marketplace to use their cards to make purchases.
Earlier in 2021, Mastercard collaborated with Bakkt, a digital asset firm, to allow its US-based users to buy, sell, and hold digital assets through their custodial wallets.
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