- Mastercard has announced Mastercard Crypto Credential, a cross-border service designed to ensure that transactions between wallets are verifiable.
- Mastercard Crypto Credential uses CipherTrace technology and first cross-border use case of this service.
- There are multiple use cases that the Mastercard Crypto Credential can unlock, as consumer and business verification needs vary widely based on market and compliance requirements.
With the advent of digital assets, traditional finance had two options: stay behind or adapt to this new financial system. Mastercard immediately understood this and not only began to support the crypto ecosystem, they also began to adopt its technology and their most recent announcement is the latest sign of this adoption.
During his presentation at Consensus 2023Raj Dhamodharan, product executive of Digital Assets and Mastercard Associations announced that the company will launch a service designed to ensure that transactions between users’ wallets are verifiable and comply with the rules, starting with transfers of digital assets between countries.
“Mastercard Crypto Credential will establish a common set of standards and infrastructure that will help certify trustworthy interactions between consumers and businesses using blockchain networks”, Raj Dhamodharan noted in a release.
Firms involved
for this workMastercard Crypto Credential uses technology from CipherTrace, the well-known blockchain analytics platform that Mastercard acquired at the end of 2021.
Other firms that will work on this project are Bit2Me, Lirium, Bitcoin Market and Uphold, with which the payment processing company is working on an initial project to allow transfers between the corridors of the United States, Latin America and the Caribbean.
In the blockchain area, they have teamed up with Aptos Labs, Ava Labs, Polygon and The Solana Foundation, who will help bring Mastercard Crypto Credential to app developers in their ecosystems.
Mastercard Crypto Credential, a new cross-border service.
Mastercard Crypto Credential, is the first case of cross-border use of this service and allows to identify wallets in transactions that meet requirements such as those of the Financial Action Task Force (FATF) “travel rule”.
According to the Mastercard press release hhere are several use cases that the Mastercard Crypto Credential can unlock, as consumer and business verification needs vary widely based on market and compliance requirements.
One of these use cases is in the transaction of NFTs, since “the level of verification required for someone to receive an NFT differs greatly from the authentication required for someone to transfer digital assets or receive assets from crypto wallets.” pointed to the signature.
Other use cases that Mastercard Crypto Credential could have are:
- Provide simple, easy-to-remember aliases to help consumers share wallet addresses with each other.
- Bring richer information to blockchain transactions through metadata
- Leverage the CipherTrace suite of services, including CipherTrace Traveler, to help verify addresses and support travel rule compliance for cross-border transactions.
With this step, Mastercard will continue to seek to set up and scale trusted ecosystems to enable commerce.
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