Market Analysis Report (18 Oct 2022)

Mastercard has announced a new program enabling financial institutions to bring secure cryptocurrency trading capabilities and services to their customers, called Crypto Source. The company will act as a bridge between Paxos and banks through it.

Mastercard and Paxos will handle regulatory compliance and security as part of the program to allow financial institutions to “gain access to a comprehensive suite of buy, hold and sell services for select crypto assets, augmented with proven identity, cyber, security and advisory services.”

While Paxos is set to provide cryptocurrency trading and custody services on behalf of banks, Mastercard’s technology will “integrate those capabilities into banks’ interfaces” to improve user experience.

The company noted that the program is complemented by Mastercard Crypto Secure, which will bring “additional security to the crypto ecosystem and support card issuers in their compliance with complex regulations.”

Ajay Bhalla, President, Cyber & Intelligence at Mastercard, was quoted saying:

“What we are announcing today is a connected approach to services that will help bring users safely and securely into the crypto ecosystem. Our recent investments in this space, such as the acquisition of CipherTrace and Ekata, are providing us with a unique set of capabilities to help provide our customers and consumers with the most technically advanced solutions available in the market.”

Mastercard will pilot the product in the first quarter of next year, before rolling it out in more geographies.