Mastercard, a leader in global payments, announced on October 17 that it will introduce the Crypto Source program to assist financial institutions in offering cryptocurrency trading services.
Banks that promote widespread cryptocurrency usage will use Mastercard to manage regulatory compliance and security. According to a press release on Monday, the Crypto Source initiative would use Mastercard to function as a bridge across banks and the cryptocurrency trading platform Paxos to encourage the widespread use of cryptocurrencies. The initiative enables financial institutions to provide customers with cryptocurrency trading services.
The industry leader in payments will take care of all the security and regulatory compliance for banks that previously forced financial institutions to steer clear of crypto assets. Although some consumers have expressed skepticism toward cryptocurrencies, others are looking for safe entry points.
Jorn Lambert, the chief digital officer of Mastercard, stated that: “there’s a lot of consumers out there that are really interested in this, and intrigued by crypto, but would feel a lot more confident if those services were offered by their financial institutions.”
In accordance with the 2022 Mastercard New Payments Index, 29% of participants said they had cryptocurrency, and 65% said their financial institutions should provide services linked to cryptocurrencies. Additionally, Mastercard Crypto Secure, a complimentary service, will boost security and help card companies comply with regulations.
Prior to now, PayPal and Paxos collaborated to make cryptocurrency trading, holding, and ownership possible for Americans.
To provide services connected to cryptocurrencies, payment juggernauts Mastercard and Visa have teamed with numerous crypto businesses. Additionally, major heavyweights like Goldman Sachs, JP Morgan, and Morgan Stanley, eschewed crypto products despite having devoted crypto teams. Threats to consumer protection, problems with compliance, and unclear regulations are some of the causes.
Nevertheless, financial organizations have accelerated the acceptance of cryptocurrencies via institutional investors and cryptocurrency consultancy services. Prior to now, Mastercard submitted applications for trademarks connected to NFT and the metaverse. enables NFT purchases on credit cards as well as crypto incentives.