Mastercard launches crypto certificate, leveraging blockchain technology to assist customers in cross-border sending and receiving of digital assets.

Mastercard is actively expanding into Web3, with its newly launched crypto credential feature that allows identity verification on its peer-to-peer P2P network, enabling customers to utilize blockchain technology for cross-border digital asset transfers and addressing regulatory issues such as travel rules.

Mastercard is strategically positioning itself in Web3, exploring partnership solutions with MoonPay and MetaMask.

Mastercard Crypto Credential Launched in Parts of Latin America and Europe

Mastercard has partnered with Bit2Me, Lirium, and Mercado Bitcoin exchanges to enable P2P instant trading, allowing them to conduct blockchain transactions easily and securely between the corridors in Latin America and Europe. The supported countries currently include Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay.

The Mastercard Crypto Credential function introduced by Mastercard allows the collaborating exchanges to verify users based on their credentials. Users will then receive a pseudonym similar to ENS, enabling them to send and receive funds among all supported exchanges without the need to input addresses, but rather convenient usernames. When a user initiates a transfer, the Mastercard Crypto Credential will verify the validity of the receiver's pseudonym and whether the receiver's wallet supports digital assets and associated blockchains. If the receiving wallet does not support the asset or blockchain, the sender will be notified, and the transaction will not proceed, thereby protecting all parties from potential fund loss.

Reducing Blockchain Complexity and Mitigating Potential Illicit Activities

The Mastercard Crypto Credential helps verify interactions between consumers and businesses using the blockchain network. It ensures that users meet a set of verification standards and confirms that the recipient's wallet supports the transferred assets. The Mastercard Crypto Credential eliminates the complexity of cryptocurrencies or blockchains, bringing more trust and certainty to these transactions.

In addition, the Mastercard Crypto Credential supports the exchange of travel rule information for cross-border transactions. Travel rules are a regulatory requirement aimed at ensuring transparency and preventing potential illicit activities.

According to their press release, P2P transactions are just the first step for the Mastercard Crypto Credential, with plans to expand their operations to NFTs, ticketing, and other payment solutions in the future depending on regulatory conditions.