The Mastercard (MA) executive in charge of cryptocurrency and blockchain products (MA) said the payment processing company is preparing a service designed to ensure that transactions between users’ wallets are verifiable and compliant, starting with transfers of digital assets between countries.
In this first cross-border use case, the “Mastercard Crypto Credential” service allows wallets to be identified in transactions that comply with requirements such as the Financial Action Task Force (FATF) “travel rules”.
“Mastercard Crypto Credential” uses technology from CipherTrace – the well-known blockchain analytics platform that Mastercard has agreed to acquire in late 2021 – to authenticate interactions.
“If two individuals want to transfer value from one country to another, the level of compliance and verification required is complex,” Dhamodharan said, and continued: “How do you identify these wallets? And how do you exchange enough information about the other party?”
Cross-border transactions have been the focus of blockchain tracker CipherTrace, the creator of a cryptocurrency system that helps companies comply with the travel rule.
Under this rule, whenever a cryptocurrency transaction worth more than $1,000 is made between two parties, the sender’s cryptocurrency service provider is expected to share the sender’s personal identifying information with the recipient’s cryptocurrency service provider and vice versa.
Originally USA – Latin America – Caribbean
To develop the service, Mastercard has partnered with wallet providers Bit2Me, Lirium, Mercado Bitcoin and Uphold.
The companies are working on an initial project to enable transfers between the US and Latin America and the Caribbean corridors.
More use cases for the service will follow, such as transactions with non-exchangeable digital assets (NFT).
To this end, Mastercard is partnering with public blockchain network organizations Aptos Labs, Ava Labs, Polygon and the Solana Foundation.
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