Mastercard has launched Mastercard Crypto Credential, which is a set of standardized rules and structures that will help authenticate transactions between consumers and businesses through blockchain networks.
The goal of Mastercard Crypto Credential is to establish a framework that enables financial institutions, governments, brands, and crypto players to engage in activities within web3 environments while adhering to predetermined standards.
According to Raj Dhamodharan, Executive VP of Blockchain and Digital Currencies at Mastercard, creating and expanding reliable ecosystems to facilitate commerce is a familiar concept for Mastercard.
“We’ve done this for years in payments – pioneering innovation in identity verification and global standards. We look forward to bringing decades of experience to this space to enhance trust and work with the broader industry and governments to enable further innovation.”
Mastercard Crypto Credential has the potential to enable various applications, as the methods of verifying consumers can differ greatly depending on the market and regulatory needs. In addition to establishing verification standards, Mastercard Crypto Credential will also offer the essential technological infrastructure to support the implementation of a broader range of use cases. Here are a few examples of how Mastercard Crypto Credential will operate:
- Offering simple and memorable aliases to aid consumers in exchanging wallet addresses with each other, will enhance the user experience and minimize the likelihood of mistakes.
- Enhancing the information contained in blockchain transactions with metadata, can establish specific requirements for a wallet and guarantee that transactions are executed according to plan.
- Utilizing CipherTrace’s range of services to validate addresses and fulfill Travel Rule requirements for cross-border transactions.
Lirium, Bit2Me, Mercado Bitcoin, and Uphold have teamed up with Mastercard to launch an initial initiative to facilitate transfers between corridors in the United States, Latin America, and the Caribbean. Additionally, Mastercard is partnering with public blockchain network organizations such as Aptos Labs, Ava Labs, Polygon, and The Solana Foundation to assist developers in integrating Mastercard Crypto Credential into their ecosystems. Mastercard and its partners will work together to improve verification in payment solutions geared towards NFTs, ticketing, enterprise, and other areas.
According to Walter Pimenta, the Executive Vice President of Product and Engineering for Latin America and the Caribbean:
“Latin America and the Caribbean are among the top regions for digital assets adoption and remittances leveraging digital assets as means of value exchange. Mastercard Crypto Credential could help to address key challenges that have traditionally hindered mainstream usage of this type of use cases, driving more industry players to join this space in a meaningful way.”
