Mastercard to provide banks with tools to access cryptocurrencies

The payments giant Mastercard, in partnership with Paxos, will act as an intermediary for traditional financial institutions in launching cryptocurrency trading. CNBС reported in an interview with Chief Technology Officer Jörn Lambert.

“There are many consumers who are genuinely interested in cryptocurrencies. They would feel much more confident if their banks offered these services,” the executive explained.

According to a survey, 60% of respondents belong to this category.

Banks were slow to meet demand due to the regulatory and technical competencies required.

As part of the initiative, Mastercard will act as a “bridge” between financial institutions and Paxos’ digital asset platform. It will provide the necessary level of security and regulatory compliance (AML/KYC).

Product tests are planned for Q1 2023. The names of participating banks are not disclosed.

In October, Mastercard announced the launch of the Crypto Secure instrument. It will allow banks to identify and curb transactions with crypto exchanges linked to fraudulent practices.

In September, competitor Visa participated in a funding round for Sardine, a platform fighting financial crime, to the tune of $51.5 million.

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