Mastercard to support financial institutions offer crypto trading

Mastercard to support financial institutions offer crypto trading

Amidst the growing popularity of cryptocurrency worldwide, Mastercard has publicized its plans of supporting financial institutions provide cryptocurrency trading with ease. The payments behemoth would act as a link between Paxos, a crypto trading platform, and banks.

In collaboration, both Mastercard and Paxos would handle security and regulatory compliance. This move is expected to relieve stresses and concerns around cryptocurrency volatility.

For the record, cryptocurrencies like bitcoin are known for high volatility, and the world’s top digital assets have lost more than 50% of their values this year. In fact, the industry suffered billion in hacks since January 2022, combined with multiple high-profile bankruptcies.

As per credible reports, Mastercard would pilot the product in the first quarter of 2023, while planning expansion in more geographies in the coming years.

Speaking on the latest move, Jorn Lambert, Chief Digital Officer at Mastercard stated that while there is a significant demand for assets, nearly 60% of the respondents are more confident of services offered by their existing banks.

It has been mentioned that Mastercard would work its way to keep banks on the right side of regulations by adhering to crypto rules, delivering identity monitoring and anti-money laundering services, and verifying transactions.

Speculations have it that if financial institutions incorporate this Mastercard partnership model, it will bring more competition for various exchanges operating in the United States, including Coinbase.

It should be noted that Mastercard and Visa have both been on collaboration sprees in the crypto space. The former has already partnered with Coinbase on NFTs and Bakkt to enable merchants and banks in its network provide crypto-related services.

Meanwhile, Visa recently opened partnership with FTX to provide crypto debit cards in over 40 countries and has more than 70 established crypto alliances.

No announcements were made by Mastercard team on which banks have signed up for the program yet.

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Pursuing her professional career as a content writer for over two years now, Pooja Sharma is endowed with a post-graduate degree in English Literature. The articles that she writes are a balanced blend of her ever-growing love of language and the technical expertise that she has gained over the years. Currently Pooja pens insightful articles for Newsorigins and numerous other websites, covering subjects such as business, finance, and technology.