Mastercard Will Connect Banks with the Cryptocurrency Market

Mastercard announced that it is ready to help banks get involved in trading Bitcoin (BTC) and other cryptocurrencies. The global online payment company will serve as a bridge between the Paxos crypto platform and the financial institutions that want to join this program.

Both Mastercard and Paxos will be responsible for covering the key aspects related to security and compliance with regulations that are of such concern to banks, according to the US CNBC report.

"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," said Mastercard digital director Jorn Lambert.

Despite the persistent down market for cryptocurrencies this year, the payment giant believes that crypto assets still have a wide range of trading potential given their wide demand.

For Lambert, it’s “shortsighted to think that a little bit of a crypto winter heralds the end of it — we don’t see that.” A recent opinion study determined that 60% of the participants preferred to have some exposure to Bitcoin (BTC) and other cryptocurrencies but through their banks.

He explained that some people still feel some fear with investments in cryptocurrencies. In his opinion, “it’s hard to believe that the crypto industry will truly go mainstream without embracing the financial industry as we know it.”

Mastercard’s role will be to ensure that banks comply with all regulatory aspects related to crypto. This includes the verification of transactions, as well as offering identity control services and avoiding money laundering.

The pilot test of the new Mastercard product is planned for the first quarter of 2023. After its launch, the company expects to continue driving its growth around the world. 

The company did not comment on which banks will be the first to participate in the first stage of the newly announced cryptocurrency trading program.