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Mastercard Launches Crypto Credential for Enhanced Security
Mastercard Introduces Web3 User Verification Solution to Combat Malicious Activities and Expands Crypto Initiatives
Mastercard, a leading global financial services company, has introduced an innovative Web3 solution aimed at improving user verification standards and significantly diminishing opportunities for malicious actors within the digital asset sector. Mastercard’s new solution focuses on providing secure transactions between users, verified according to the standards set by the company.
On April 28th, 2023, Mastercard announced the “Mastercard Crypto Credential,” a novel solution designed to enhance security and compliance in the digital asset space. An accompanying explainer video on Twitter illustrated the company’s goal of building a secure method for Web3 and blockchain service providers to help safeguard transactions between users, verified according to Mastercard’s established standards.
The Mastercard Crypto Credential involves issuing users a unique identifier, known as the “Mastercard crypto credential unique identifier.” This identifier enables individuals to instantly confirm that the address they wish to send funds to has been vetted by Mastercard and operates in compliance with the company’s stringent standards.
Additionally, the solution is designed to support compliance through the exchange of essential metadata required to meet regulatory requirements.
Even if bad actors manage to obtain a unique identifier, Mastercard can swiftly revoke their verification if they are found engaging in suspicious activities.
Mastercard has partnered with numerous organizations to develop this innovative solution. On the wallet side, the company has collaborated with crypto wallet providers Bit2Me, Lirium, Mercado Bitcoin, and Uphold.
In terms of blockchain networks, Mastercard has joined forces with Aptos, Avalanche, Polygon, and Solana.
Moreover, Mastercard will tap into CipherTrace’s suite of services, including CipherTrace Traveler, to help verify addresses and support Travel Rule compliance for cross-border transactions.
Over the past few years, Mastercard has consistently increased its exposure to the crypto sector. This latest announcement follows the recent launch of a nonfungible token (NFT) gated musician accelerator program in collaboration with Polygon. The program offers free access to materials, unique artificial intelligence (AI) tools, and other experiences for Mastercard’s Music Pass NFT holders.
Mastercard’s competitor, Visa, also made a move in the crypto space earlier this week. On April 24th 2023, Cuy Sheffield, Visa’s head of crypto, announced a new stablecoin payments-focused project on Twitter. While details are limited at this stage, Sheffield shared a job listing for the role, the company is “building the next generation of products to facilitate commerce in everyone’s digital and mobile lives.” Visa is seeking someone with strong experience in Web3 and blockchain technology.
Mastercard has made significant strides in enhancing user verification standards and reducing opportunities for malicious actors in the digital asset space with the introduction of their Web3 solution, the Mastercard Crypto Credential. By collaborating with various wallet providers, blockchain networks, and leveraging CipherTrace’s services, the company aims to ensure secure and compliant transactions in the rapidly evolving crypto landscape. As Mastercard and its competitors, like Visa, continue to explore and invest in the crypto sector, these developments demonstrate a growing commitment to integrating digital assets and emerging technologies into the global financial ecosystem.