MasterCard and Paxos team up to help banks provide cryptocurrency trading services

Payment giant MasterCard will launch a new program in collaboration with Crypto Exchange Paxos. This new project will help financial institutions to provide cryptocurrency trading services to their clients. apicture for each a report The MasterCard published by CNBC will act as a bridge between Paxos and the banks.

The payments giant will reportedly handle the security and compliance aspect of the arrangement. Ironically, these are the two main reasons the company mentioned to avoid this asset class in the first place.

The role is limited to compliance and monitoring

MasterCard will ensure that financial institutions are up to date on regulatory compliance, as well as verify transactions and provide insights on anti-money laundering and identity control.

Citing a survey by MasterCard, chief digital officer Jorn Lambert notes that demand for crypto assets remains, despite encryption winter. But 60% of respondents would like to explore this volatile asset class with their existing banks. This is probably where MasterCard services come in.

“There are a lot of consumers who are really interested in this and who are fascinated by cryptocurrencies, but they will feel more confident if these services are offered by their financial institutions,” Lambert told CNBC.

Speaking on the topic of cryptocurrency adoption, Lambert claimed that the cryptocurrency industry will struggle to become mainstream. This, if it does not include the traditional financial industry.

MasterCard coding projects

However, this collaboration is not MasterCard’s first foray into the crypto space. The company announced a number of joint ventures and partnerships this year.

Earlier this year, the payments giant put together With cryptocurrency exchange Nexo to launch its first crypto-backed payment card.

In August 2022, MasterCard release Argentina prepaid card, in partnership with Binance. This card made daily purchases through crypto available to all Binance users in the country.

October 4, MasterCard most dangerous Launch of Crypto Secure, a risk assessment tool that helps assess the risk profile of cryptocurrency exchanges.

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