Mastercard is preparing to unveil a new solution that will enable banks and other financial institutions to offer crypto trading services to their consumers.
The new solution, Crypto Source, is being created in collaboration with Paxos, a blockchain infrastructure platform based in New York.
Paxos will provide trading and custody services for cryptocurrencies on behalf of the banks, while Mastercard will “use its technology to integrate these capabilities into the bank interfaces.”
Mastercard states that upon launch, its partners will have access to “buy, hold, and sell services for specific crypto assets, as well as proven identity, cyber security, and consulting services.”
Mastercard’s chief digital officer, Jorn Lambert, adds, “Our commitment is straightforward: to investigate crypto and the underlying digital assets technology to enhance consumer payment options.”
Crypto Source, according to the company, is still in development and is being readied for pilot programmes; specifics of a wider rollout will be published “at a later date.”
In recent years, Mastercard has taken a number of steps to advance its crypto strategy.
It purchased blockchain analytics startup CipherTrace in September 2021 to enhance its crypto cybersecurity capabilities. Later that year, it formed a partnership with the cryptocurrency startup Bakkt to enable its merchant, bank, and fintech clients in the United States to offer cryptocurrency-based products and services.
In August of this year, Binance teamed with Mastercard to offer a cryptocurrency-enabled payment card in Argentina.
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