Global payments giant Mastercard announced on Monday that it would launch the program CryptoSource to help financial institutions provide cryptocurrency trading services. Mastercard will take care of regulatory compliance and security for banks that promote mass adoption of cryptocurrencies.
Mastercard Partners with Paxos to Enable Banks to Offer Cryptocurrency Trading Services
According to a press release dated October 17, the Crypto Source program will allow Mastercard to act as a bridge between the Paxos crypto trading platform and banks to drive crypto mass adoption. The program allows financial institutions to offer crypto trading services to their clients.
The payments giant will take care of all regulatory compliance and security for banks that previously made financial institutions shun crypto assets. While some customers have been skeptical of cryptocurrencies, others are looking for safe ways to enter the market.
Mastercard Chief Digital Officer Jorn Lambert said:
“There are a lot of consumers who are really interested in this, and intrigued by crypto, but who would feel much more confident if these services were offered by their financial institutions.”
According to 2022 Mastercard New Payments Index, 29% of respondents hold cryptocurrencies and 65% prefer their financial institutions to offer cryptocurrency-related services. Additionally, the Mastercard Crypto Secure add-on will provide additional security and help card issuers meet regulatory compliance.
Previously, PayPal partnered with Paxos to allow US customers to buy, sell or hold cryptocurrencies.
Financial Institutions Drive Mass Adoption of Cryptocurrencies
Payments giants Mastercard and Visa have partnered with many cryptocurrency companies to offer cryptocurrency-related services. Additionally, despite having dedicated cryptocurrency teams, financial institutions such as Goldman Sachs, Morgan Stanley, and JPMorgan have avoided offering cryptocurrencies. Reasons include consumer protection risks, compliance issues and lack of regulatory clarity.
However, financial institutions have been driving crypto adoption through institutional investors and crypto advisory services. Mastercard has previously filed applications for trademarks related to NFT and metaverse. It also offers crypto rewards and NFT purchase capabilities on credit cards.
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Mastercard Allows Banks to Offer Customers Crypto Exchanges to Drive Mass Crypto Adoption
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