Mastercard x Paxos
In an official presser by the second largest payments processor in the world, Mastercard has announced that it is launching a new program to enable large scale financial institutions to bring crypto trading capabilities and services to their customers, in partnership with Paxos. In a program that is being called ‘Crypto Source’ – the program is designed to enable users to buy, hold and sell cryptos – and these services will be complemented by Mastercard’s proprietary Crypto Secure solution for additional security and compliance.
Reported to launch in Q4 2022, the tool has been launched in tandem with Mastercard’s existing partner Paxos Trust Company. Paxos is well known in the space for providing similar services to global payment giant, PayPal – which launched its own crypto services back in late 2020. Paxos would
The partnership between Paxos and Mastercard would work out in a way such that Paxos would provide crypto asset trading and custody services on behalf of the banks while Mastercard would deploy its cutting edge technology to integrate crypto trading into banks’ interfaces.
Mastercard has been quickly acquiring crypto-based investments over quite some time now, including crypto intelligence service CipherTrace back in September 2021 and the digital identity platform Ekata in April last year.
In the official presser, Ajay Bhalla, President, Cyber & Intelligence at Mastercard has said,
‘What we are announcing today is a connected approach to services that will help bring users safely and securely into the crypto ecosystem. We’re excited to build on our long-term partnership with Paxos – co-innovating to bring safe and secure technology to financial institutions.’
Bhalla was also optimistic about the scope of this business scope and what the future holds in this regard,
‘Our crypto product innovations will provide choice at scale and continue to bring one-of-a-kind opportunities to financial institutions as they seek to offer new, advanced services to their customers.’
Additional Read: Top Crypto Partnerships 2022
We’re proud to work with @Mastercard, easing the way for banks & fintech to add crypto to digital wallets. In a new partnership, Mastercard will leverage Paxos to seamlessly allow financial institutions to buy, sell and hold crypto on behalf of clients. https://t.co/cVpNQ0Crvw
— Paxos (@PaxosGlobal) October 17, 2022
According to reports from CoinTelegraph – Jorn Lambert, Mastercard’s chief digital officer – has expressed his confidence that this crypto winter is nothing but a passing phase and to think of it as the end of crypto is extremely naive and short-sighted.
‘As regulation comes in, there is going to be a higher degree of security available to the crypto platforms, and we’ll see a lot of the current issues getting resolved in the quarters in the years to come.’
Mastercard’s latest foray into the crypto space has been in line with its own research report regarding crypto awareness and adoption in the market right now. According to Mastercard New Payments Index reports, 29% of respondents globally hold crypto as an investment asset, while another 65% of respondents in the study reportedly indicated a preference for crypto services to be deployed by their current financial institution.
Thus looking at such data and realising the scope of the crypto industry as a whole from a business point of view, Mastercard has been on a slew of strategic acquisitions and partnerships to strengthen its position in the nascent crypto market and stay ahead of the competition.
Related: Top Crypto News Today