Users of traditional financial institutions will have secure access to the crypto market with a new tool from Mastercard.
Mastercard, a payment giant, announced a partnership with the cryptocurrency platform Paxos. The companies have teamed up to create a bridge between banking institutions and the crypto market.
The collaboration has developed a special Crypto Source tool that will open up a range of new opportunities for traditional banks and fintech companies, including:
- buying, storing, and selling crypto-assets;
- crypto analytics and transaction monitoring;
- cashing out funds generated from crypto transactions;
- issuing cryptocurrencies;
- providing clients with cross-border services based on crypto-assets;
- developing open banking and other products to enter the cryptocurrency market.
The product is scheduled to be tested in early 2023. Under the initiative, Mastercard will act as an intermediary between financial institutions and the Paxos digital asset platform, ensuring security and compliance with regulatory requirements.
Walter Hessert, Head of Strategy at Paxos, emphasized that Crypto Source will enable banks and lenders to use “safe, reliable crypto assets.” The scale of Mastercard’s global network will allow a large number of users of traditional financial institutions to join the crypto market.
According to Jorn Lambert, Chief Digital Officer of Mastercard, securing cryptocurrency transfers is a priority for the new tool. The main objective of Mastercard’s crypto innovation is “to bring one-of-a-kind opportunities to financial institutions as they seek to offer advanced services.”JPMorgan and Visa recently announced that they’re ready to join forces to optimize cross-border payments using their blockchain networks.
