Mastercard and Paxos, a blockchain infrastructure platform, have collaborated on an initiative to assist banks and fintech businesses in providing their clients with cryptocurrency trading services. The payments business announced that it is getting ready to test a service dubbed Crypto Source, which offers financial institutions infrastructure to make buying, selling, and holding cryptocurrency easier. According to a press statement from the company, Mastercard will act as a link between banks, and Paxos will offer "crypto-asset trading and custody services on behalf of the banks."
Users can buy, hold, and trade cryptocurrencies using the "Crypto Source" service, which is enhanced by Mastercard's in-house Crypto Secure technology. The payment juggernaut will help banks comply with crypto regulations, validate transactions, stop money laundering, and keep an eye on identities. The program is scheduled to begin in 2022's fourth quarter.
According to a Mastercard survey, 29% of respondents worldwide own cryptocurrencies as investments, while another 65% said they preferred their existing financial institution to offer services connected to cryptocurrencies.
The action was taken shortly after Mastercard introduced Crypto Secure, a piece of software that enables financial institutions to recognize and perhaps prevent customer purchases from cryptocurrency exchanges that have been linked to fraud.
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"Trust is the core of what we do at Mastercard. The integrated approach to services that we are proposing today will let users enter the crypto ecosystem in a secure manner. Our recent investments in this area, like the purchase of CipherTrace and Ekata, have given us a special set of skills to help offer our clients and consumers the most technologically cutting-edge products on the market "said Mastercard's President of Cyber and Intelligence, Ajay Bhalla.
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PayPal began offering cryptocurrency services in late 2020, and Paxos provides comparable services. The platform is renowned for offering blockchain infrastructure that enables other businesses to provide products and services linked to cryptocurrencies.
