Mastercard launches crypto-currency buying and selling service

Mastercard recently introduced Crypto Source, a new program enabling banks to offer secure cryptoasset trading capabilities and services to their customers. This service for buying and selling crypto-currencies will be launched in 2023 in the USA, Brazil and Israel as part of a pilot project.

Accelerating the adoption of cryptoactives

The New Mastercard Payments Index 2022 shows that almost a third of people surveyed globally hold crypto-currencies as an investment. Yet, although more and more initiatives are emerging, today it remains difficult to use them as a means of payment.

To enable financial institutions to convert their customers to crypto-currencies, Mastercard has announced the upcoming launch of a service for buying, holding and selling cryptoassets called "Crypto Source".

" What we're announcing today is a connected approach to services that will help securely integrate a future billion users into the cryptocurrency ecosystem," reports Ajay Bhalla, president of Mastercard's cyber and intelligence business, in a statement released on October 17.

This new program should enable banks, in partnership with regulated and licensed cryptoasset custody service providers, to familiarize themselves with digital assets and accelerate their adoption. In particular, Mastercard has linked up with Paxos to offer cryptoasset trading and custody services on behalf of banks.

According to Mastercard, Crypto Source is in the preparatory phase for pilot programs. The company has not yet specified which banks will be the first to participate.

The Crypto Secure solution completes the offering

Mastercard's partner banks will not only have access to Crypto Source, but also to Crypto Secure, a solution designed to enhance the security of the cryptoasset ecosystem and help card issuers comply with complex regulations. It has to be said that compliance has become an important issue in crypto-currencies in recent years as governments seek to implement new restrictions in the sector.

Mastercard's crypto-related offerings now include a range of services:

  • technological support
  • a partnership to manage certain cryptoassets,
  • safety management,
  • crypto-currency payment and redemption options,
  • management of crypto affiliate programs.

Initiatives linking blockchain and the financial industry

Mastercard isn't the only player proposing initiatives to combine Blockchain with the financial industry. Most recently, Visa partnered with the FTX platform to extend its crypto debit card offering into some 40 countries.

For its part, American Express has confirmed its intention to use stablecoin, digital currencies backed by a "safe haven" asset such as the US dollar or gold.

All these actions should boost investor interest in cryptoactives and facilitate their use. They should also encourage banks to offer virtual currencies to their retail customers.