Mastercard will implement its technology to integrate cryptocurrency trading into banking interfaces, while Paxos is set to provide its trading and deposit services.
Global payments giant Mastercard continues its efforts to promote cryptocurrency adoption by developing a new tool that allows banks to trade cryptocurrencies such as Bitcoin.
Mastercard officially announced on Oct. 17 a new program to allow financial institutions to provide cryptocurrency trading capabilities and services to their customers.
Called “Crypto Source,” the program is designed to allow users to buy, hold and sell cryptocurrencies, complemented by Mastercard’s proprietary Crypto Secure solution for added security and compliance.
The tool is launched in collaboration with existing Mastercard partner Paxos Trust Company and is expected to launch in Q4 2022.
Within the new partnership, Paxos will provide crypto-asset trading and deposit services on behalf of banks, while Mastercard will implement its technology to integrate crypto-asset trading into banking interfaces.
Ajay Bhalla, president of Mastercard’s cyber and intelligence unit, noted the company’s growing crypto expertise and commitment to the market. He mentioned Mastercard’s recent crypto-related investments, including the acquisitions of crypto intelligence service CipherTrace in September and digital identity platform Ekata in April last year.
The news announced, Mastercard referred to the Mastercard New Payments Index 2022, reports that 29% of respondents worldwide have cryptocurrencies as an investment. Another 65% of respondents reported a preference for crypto services provided by their current trusted financial institution.
“What we are announcing today is a connected approach to services that help bring users safely into the crypto ecosystem,” Bhalla noted.
Paxos Chief Strategy Officer Walter Hessert also highlighted the scale of Mastercard’s global network of financial institutions. According to the executive, the new tool will offer banks the “most confidential way to provide secure and reliable crypto assets.”
Mastercard’s latest crypto initiative comes amid the overall crypto market capitalization falling by roughly 60% since early 2022. According to Jorn Lambert, Mastercard’s chief digital officer, it would be “short-sighted to think that a little bit of crypto winter is the final”.
“As regulation kicks in, there will be a greater degree of security available to crypto platforms, and we will see many of the current issues resolved in the coming years and quarters,” Lambert said.
Related: Mastercard Launches New Crypto Fraud Protection Tool
Mastercard has been actively working on various crypto and blockchain related initiatives in recent years. In January 2022, Mastercard announced a partnership with the Coinbase exchange to allow Coinbase NFT users to make purchases with Mastercard cards.
In October 2021, Mastercard partnered with digital asset company Bakkt to enable its US customers to buy, sell, and hold digital assets through the wallet.