Mastercard offers crypto trading to banks with Paxos

Payments giant Mastercard is offering to help traditional financial institutions get into crypto by providing the necessary fiat tokens.

The project is a joint venture with Paxos, with Mastercard providing the bridge. Mastercard will handle regulatory compliance and security, two of the bigger challenges facing crypto when it comes to institutional users.

Mastercard Offers to Accelerate Institutional Crypto Adoption

Mastercard’s partner Paxos has already made a name for itself as the crypto trading platform used by PayPal. Now the company will make further progress with banks due to the collaboration with Mastercard.

For its part, Mastercard has emerged as a strong proponent of crypto. The card issuer is pioneering various tools including AI technology to improve crypto security.

According to Jorn Lambert, Mastercard’s digital manager, security is an important factor in whether institutions decide to adopt the technology or not.

“There are a lot of consumers out there who are really interested in this, and fascinated by crypto, but would feel a lot more confident if these services were offered by their financial institutions,” Lambert told CNBC on Monday. The Mastercard executive added: “It’s still a bit scary for some.”

Mastercard hopes that their involvement will help to allay any lingering fears that banks may have.

Mastercard digital officer: crypto winter is not so bad

On CNBC Mastercard’s chief digital officer was further asked if the recent crypto winter has slowed or stopped adoption, but he dismissed the idea. The Mastercard man remains very bullish on the wider industry.

“It would be short-sighted to think that a bit of a crypto winter heralds its end. We don’t see that, Lambert said. “As regulation comes in, there will be a higher degree of security available to the crypto platforms, and we will see many of the current issues resolved in the quarters for years to come.”

As Mastercard sees it, crypto will form a central plank of its long-term strategy, with the industry now at the “tipping point of really going mainstream,” according to Lambert.

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