The payment company seeks to position itself in the digital asset sector. This time, it joined hands with Paxos to make it easier for banks to adopt.
Mastercard will make it easier for banks to offer crypto trading
The company partnered with crypto firm, Paxos
Crypto Winter Won't Curb Adoption, Director Said
The payment giant Mastercard continues to make waves in the digital asset sector. Shortly after outlining its efforts to bring cryptocurrency payments into the mainstream, the company has announced a new operation to make it easier for banks to adopt the new asset class.
According to a report from CNBC, the credit card issuer has partnered with Paxos to launch a new program that will help traditional financial institutions offer cryptocurrency trading. The company will act as a “bridge” with the Paxos digital currency platform, while providing security and compliance to banks.
Banks And Payments Cryptocurrencies
Mastercard and Paxos will help banks offer cryptocurrency trading
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The payment giant Mastercard continues to make waves in the digital asset sector. Shortly after outlining its efforts to bring cryptocurrency payments into the mainstream, the company has announced a new operation to make it easier for banks to adopt the new asset class.
According to a report from CNBC, the credit card issuer has partnered with Paxos to launch a new program that will help traditional financial institutions offer cryptocurrency trading. The company will act as a “bridge” with the Paxos digital currency platform, while providing security and compliance to banks.
Mastercard will test the product during the first quarter of 2023, according to the report, and then plans to expand to other regions. They did not disclose if there are already associated banks for these tests and which ones they are.
The company's focus is to focus on ensuring service and regulatory compliance to institutions, two factors it has found keep banks away from the asset class. With this in mind, the company will be in charge of verifying transactions and providing identity control and money laundering control services, the report said.
Two weeks ago, Mastercard introduced a new tool called “Crypto Secure”, which aims to help banks and card issuers combat cryptocurrency-related fraud.
Crypto winter does not scare Mastercard
Making it easier for banks to adopt is part of the firm's broader strategy to drive cryptocurrency payments and bring innovation to a broader group of people. Mastercard recently published a blog post detailing five core areas it is working on to carry out this mission.
Amid the growth in demand for digital assets, the company has recognized the importance of traditional banks being able to expand their service offerings for all types of customers. The digital director of Mastercard, Jorn Lambert, highlighted in this regard in an interview with CNBC that the surveys still show the demand for these assets, but that the majority of people, approximately 60%, have expressed that they would prefer to try cryptocurrencies through their existing banks.
Lambert also addressed the issue of the sharp price slowdown that the cryptocurrency market has seen in 2022. However, he does not believe that this current price trend will curb interest and growth in the sector in the coming years.
“It would be short-sighted to think that a bit of a crypto winter heralds the end, we don’t see that,” the executive commented. He explained that further adoption could come as regulations are put in place for the sector. It also suggested that this potential increase in activity and transactions with digital currencies could represent a significant change for Mastercard's core business.
Cryptocurrencies are on the "cusp of really becoming mainstream" and still need to partner with current players to get there, he said. “It is hard to believe that the crypto industry really goes mainstream without embracing the financial industry as we know it,” Lambert added.
