Traditional finance seems to be penetrating the crypto space.
After Visa and JP Morgan, Mastercard is now starting to build on the blockchain after teaming up with Stellar.
Token.io works with Mastercard
Token.io Limited revealed that they had been chosen by Mastercard – which processes 3.4bn transaction every day – to develop an “open banking hub” according to Cryptobriefing.
An official press release says that Token.io will develop Mastercard’s connectivity layer, helping to connect merchants and retailers to financial services.
This latest move is a part of Mastercard’s efforts for a pan-European directory, enhancing connectivity between financial institutions and third-party providers.
Mastercard will also offer a dedicated dispute resolution mechanism, and it will boast legal and regulatory compliance.
This is quite a big move for Token which is a San Francisco-based startup that has the primary goal of making it “as easy to send money globally as it is to send an email or text message,” according to its website.
Cryptobriefing notes that to do that, “they provide a financial API, TokenOS, as well as a dollar-backed stablecoin on the Stellar (XLM) blockchain, Token X.”
“Fragmentation and a lack of consistency in third party access are creating complexity in open banking,” said Token.io CEO, Steve Kirsch.
He continued and explained: “So we welcome the chance to work with Mastercard and leverage Token’s open API platform, to address these issues at scale and together accelerate the global adoption of open banking.”
It’s not clear whether Mastercard will use crypto
This partnership with Mastercard will allow the company to support and use the blockchain tech, but there are no words whether they also plan to use digital assets.
This is not Mastercard’s first look into the blockchain tech.
Back in 2018 towards the end of the year, they placed a $298 million bid on Ripple’s partner Earthport in order to expand its offering in cross-border remittances.