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Global financial services leader Mastercard has introduced a new Web3 solution aimed at improving user verification standards and “minimizing the chances for malicious actors” in the digital asset sector.
The initiative is named the “Mastercard Crypto Credential,” with its launch announced on April 29.
In a related explainer video shared on Twitter, the company detailed that it is “creating a method for Web3 and blockchain service providers to assist in securing transactions between users, verified according to standards established by Mastercard.”
At #Consensus23, we revealed how we are fostering trust in the blockchain ecosystem through Mastercard Crypto Credential. Collaborating with crypto wallet providers @Bit2Me_Global, @LiriumAG, @MercadoBitcoin, and @UpholdInc, along with public blockchain network organizations @AptosLabs,… pic.twitter.com/P33mtDVAas
— Mastercard News (@MastercardNews) April 28, 2023
As part of this solution, users will receive a “Mastercard crypto credential unique identifier,” which theoretically allows individuals to quickly verify that an address they intend to send funds to has been approved by Mastercard and is compliant with the company’s standards.
“The solution is also intended to facilitate compliance through the exchange of critical metadata, necessary to adhere to regulations,” Mastercard indicated, emphasizing that it should help “minimize the chances for malicious actors and the risk of permanently lost funds.”
Consequently, even if malicious actors manage to obtain a unique identifier, it seems Mastercard can swiftly revoke their verification if they are found to have participated in illicit activities.
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The company listed numerous partners involved in this solution. On the wallet front, Mastercard has collaborated with crypto wallet providers Bit2Me, Lirium, Mercado Bitcoin, and Uphold.
Regarding blockchains, the firm has partnered with Aptos Labs (Aptos), Ava Labs (Avalanche), Polygon Labs (Polygon), and The Solana Foundation (Solana).
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Mastercard also noted that it will be “utilizing CipherTrace’s suite of services — including CipherTrace Traveler — to assist in verifying addresses and support Travel Rule compliance for cross-border transactions.”
Mastercard has been consistently increasing its involvement in the crypto industry over the past few years, and this latest announcement follows closely after it launched a non-fungible token (NFT) gated musician accelerator program in partnership with Polygon.
This program provides free access (until the end of April) to resources, unique artificial intelligence (AI) tools, and other experiences for holders of Mastercard’s Music Pass NFT.
Mastercard’s competitor Visa also made a move in the crypto space earlier this week, as Cuy Sheffield, the firm’s head of crypto, took to Twitter on April 24 to unveil a new project focused on stablecoin payments.
While details are limited at this time, Sheffield shared a job posting for a position that indicates the company is “developing the next generation of products to enhance commerce in everyone’s digital and mobile lives.” The firm is seeking an individual with substantial experience in Web3 and blockchain technology.
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