- They aim to help banks offering crypto-trading services
- MasterCard will act as a “bridge” between Paxos and the banks
A new program with crypto-exchange Paxos will be launched in conjunction with the payment giant MasterCard.Financial institutions will be able to provide their customers with services for crypto-trading thanks to this new venture.
MasterCard will serve as a “bridge” between Paxos and the banks, according to a CNBC report.
The payments giant will reportedly handle the security and regulatory compliance aspects of this arrangement. Ironically, the company cited these two primary reasons for avoiding this asset class in the first place.
Role limited to compliance and monitoring
In addition to verifying transactions and providing insights into anti-money laundering and identity monitoring, MasterCard will ensure that financial institutions are up to date with regulatory compliance.
Chief Digital Officer Jorn Lambert stated, citing a MasterCard poll, that demand for cryptocurrencies continues despite the crypto winter.
However, sixty percent of respondents wish to investigate this volatile asset class with their existing financial institutions. MasterCard’s services likely come in handy in this situation.
According to Lambert, who spoke with CNBC, many consumers out there are really interested in this, and intrigued by cryptocurrency, but would feel a lot more confident if those services were offered by their financial institutions.
Lambert asserted when he addressed the issue of crypto-adoption that the crypto industry will encounter difficulties in achieving mainstream acceptance. This, except if it embraces the customary money industry.
However, this partnership is not MasterCard’s first venture into the cryptocurrency industry. This year, the company has announced a number of blocks and joint ventures.
The first-ever crypto-backed payment card was launched earlier this year by the payments giant and the crypto-exchange Nexo.
In collaboration with Binance, MasterCard launched a prepaid card in Argentina in August 2022. All of the country’s Binance users were able to make everyday purchases using crypto with this card.
On October 4th, Mastercard) announced the availability of Crypto Secure, a risk assessment tool for crypto-exchange risk profiles.