Mastercard Teams Up With Paxos To Launch Crypto Trading For Banks – Mastercard (NYSE:MA), American Express (NYSE:AXP)
Mastercard Inc MA announced on Monday a program to enable financial institutions to bring secure crypto trading capabilities and services to their customers, in partnership with blockchain infrastructure platform Paxos.
Under the agreement, on behalf of the banks, Paxos will offer crypto-asset trading and custody services, while Mastercard will use its technology to integrate these capabilities into banking interfaces, providing customers with a “seamless” experience.
Mastercard’s financial institution partners will have access to a full range of buy, hold and sell services for a range of crypto assets, as well as proven identity, cyber, security and consultancy services, through partnerships with regulated and licensed crypto custody providers.
Program aimed at helping customers with complex regulations
The program seeks to improve ecosystem security and help card issuers comply with complex regulations.
“Our commitment is simple – to explore crypto and the underlying digital asset technology to support consumer choice in payments. Today is an exciting step in our crypto journey that draws on the strengths of our global businesses, from open banking and identity verification to analytics and fraud monitoring to settlement solutions,” said Jorn LambertChief Digital Officer at Mastercard.
He added that 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.
According to the 2022 Mastercard New Payments Index, 29% of respondents globally own cryptocurrencies as investments, while another 65% say they want their existing trusted financial institution to offer cryptocurrency-related services.
Visa and Mastercard engaged in a crypto partnership frenzy
For NFTs and Bakkt, Mastercard has already partnered with Coinbase, enabling banks and merchants on the network to offer services related to cryptocurrencies.
To offer cryptocurrency debit cards in 40 countries as of last week, Visa teamed up with FTX.
Visa currently has more than 70 crypto partnerships.
American Express Company AXP have stated that they are investigating the use of stablecoins, which are backed by the value of a dollar or other fiat currency, with cards and networks.
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