Mastercard, Paxos Team to help banks with crypto

Mastercard is expanding its partnership with cryptocurrency trading platform Paxos by launching Crypto Source, a new program to help financial institutions (FIs) up the game when it comes to crypto trading.

Under an expanded agreement, Paxos will provide trading and custody services for cryptoassets on behalf of banks, while Mastercard will leverage its technology to integrate these capabilities into banks’ interfaces. The resulting goal is to provide a seamless buying, selling and trading experience for consumers, according to a press release Monday (October 17).

“Our commitment is simple – to explore crypto and the underlying digital asset technology to support consumer choice in payments,” Mastercard Chief Digital Officer Jorn Lambert said in the release. “… Our crypto product innovations will provide choice at scale and continue to provide unique opportunities to financial institutions as they seek to offer new, advanced services to their customers.”

The global payments and finance company will act as a bridge between Paxos and the banks, offering its banking partners a complete suite of crypto trading services for selected assets, the release said. Regulatory compliance, identity, cyber security and advisory services are also included and will be augmented by Mastercard Crypto Secure, which provides additional security and supports card issuers with compliance regulations.

Mastercard’s President of Cyber ​​and Intelligence Ajay Bhalla said in the release that Mastercard’s other investments in the crypto trading space — the acquisitions of CipherTrace and Ekata — already provide the company with a “unique set of capabilities” to provide customers with the “most technically advanced solutions” available in the market.

Mastercard struck a deal with CipherTrace in September 2021 for undisclosed terms in a move to combine both firms’ cyber capabilities and artificial intelligence (AI).

Read more: Mastercard Acquires Crypto Intel Startup CipherTrace

With CipherTrace, Mastercard said it will be able to differentiate the card and real-time payments framework for the benefit of both customers and investors worldwide.

In April 2021, Mastercard acquired identity verification firm Ekata for $850 million to further its identity verification efforts.

See more: Mastercard to buy identity verification firm Ekata for $850 million

For all PYMNTS crypto and EMEA coverage, subscribe to the daily Crypto and EMEA newsletter.