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29 May 2024

Mastercard launches Crypto Credentials system to simplify crypto transactions

Mastercard launched Mastercard Crypto Credential on May 29, enabling users to send and receive crypto using simplified aliases instead of complex blockchain addresses, according to a press release.

Mastercard Crypto Credential verifies interactions among consumers and businesses on blockchain networks, ensuring users meet verification standards and confirming the recipient’s wallet supports the transferred asset.

The system simplifies the process of knowing which assets or chains are supported by the recipient, enhancing trust and certainty in transactions. Additionally, Mastercard Crypto Credential supports exchanging Travel Rule information for cross-border transactions, a regulatory requirement to prevent illegal activities.

The system works by first verifying users according to Mastercard’s standards, who then receive an alias for sending and receiving funds across supported exchanges. When initiating a transfer, the system checks the validity of the recipient’s alias and wallet compatibility.

If the wallet does not support the asset or blockchain, the sender receives a notification, and the transaction halts to prevent loss of funds.

Mastercard will initially support peer-to-peer (P2P) transactions but could extend the service to non-fungible tokens (NFTs), ticketing, and other payment solutions.

Latin America and the EU

Mastercard Crypto Credential is aimed at the Latin American and European markets. The service is available to users in several countries, including Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay.

The service is available on three main exchanges: Bit2Me, Lirium, and Mercado Bitcoin.

Users of Lulibit, a Panama and Guatemala-based exchange, can also access the service via Lirium. Brazil-based crypto wallet provider Foxbit is also participating in the pilot ecosystem.

Mastercard intends to offer Crypto Credential to select users on a first-come, first-served basis and then extend the service to more than 7 million users in future months.

Mastercard’s other efforts

Mastercard has pursued various other blockchain projects. Its Multi-Token Network aims to improve the security, scalability, and interoperability of crypto transactions. Its Crypto Source service, powered by Paxos, allows banks to offer crypto trading to customers.

The company has also developed technology to tokenize central bank digital currencies (CBDCs) on various blockchains.

Mastercard powers several payment cards issued by crypto companies, including cards from Nexo, Bybit, Uphold, Bitpay, and Revolut.

The post Mastercard launches Crypto Credentials system to simplify crypto transactions appeared first on CryptoSlate.

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