A new system called Mastercard Crypto Credential was launched by Mastercard on May 29, allowing users to send and receive cryptocurrencies using simplified aliases instead of complex blockchain addresses, according to a recent press release.
The Mastercard Crypto Credential system verifies interactions between consumers and businesses on blockchain networks, ensuring that users meet verification standards and confirming that the recipient’s wallet supports the transferred asset. This simplifies the process of determining which assets or chains are supported by the recipient, increasing trust and certainty in transactions. Additionally, Mastercard Crypto Credential supports the exchange of Travel Rule information for cross-border transactions, which is a regulatory requirement aimed at preventing illegal activities.
To use the system, users must first be verified according to Mastercard’s standards, after which they receive an alias for sending and receiving funds across supported exchanges. When initiating a transfer, the system checks the validity of the recipient’s alias and wallet compatibility. If the recipient’s wallet does not support the asset or blockchain, the sender is notified and the transaction is halted to prevent loss of funds.
Initially, Mastercard Crypto Credential will support peer-to-peer (P2P) transactions but could potentially expand the service to include non-fungible tokens (NFTs), ticketing, and other payment solutions.
The launch of Mastercard Crypto Credential is primarily targeted at the Latin American and European markets. The service is available to users in countries such as Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay. Users can access the service on three main exchanges: Bit2Me, Lirium, and Mercado Bitcoin. Lulibit users in Panama and Guatemala can also access the service via Lirium, and customers of the Brazil-based crypto wallet provider Foxbit are participating in the pilot ecosystem.
Mastercard plans to offer Crypto Credential to select users on a first-come, first-served basis initially, with the goal of extending the service to over 7 million users in the coming months.
In addition to the launch of Mastercard Crypto Credential, Mastercard has been involved in various other blockchain projects. The Multi-Token Network aims to enhance the security, scalability, and interoperability of crypto transactions, while the Crypto Source service, powered by Paxos, enables banks to offer crypto trading to customers. The company has also developed technology to tokenize central bank digital currencies (CBDCs) on different blockchains.
Various payment cards issued by crypto companies, including Nexo, Bybit, Uphold, Bitpay, and Revolut, are powered by Mastercard.
