Mastercard, a global payment processing company, has launched a new service to verify and ensure the compliance of cross-border transactions between users' wallets. The Mastercard Crypto Credential service aims to provide a set of verification standards for attestation of interactions, beginning with transfers of digital assets between countries.
The Crypto Credential service is designed to make cross-border transactions compliant and verifiable. To comply with requirements such as the Financial Action Task Force's "travel rule," the service allows wallets to be identified in transactions. The set of common standards for attestation of interactions will use technology from CipherTrace, a well-known blockchain analytics platform that Mastercard agreed to acquire in late 2021.
The technology used by the service is from CipherTrace, and it will ensure compliance and verification of transactions.
To roll out the service, Mastercard has collaborated with wallet providers Bit2Me, Lirium, Mercado Bitcoin, and Uphold. The firms are working on an initial project to enable transfers between the US and Latin America and the Caribbean corridors.
The Crypto Credential service will help Mastercard comply with the "travel rule" requirement, which mandates that whenever crypto worth over $1,000 is transacted between two parties, the crypto service provider of the sender must communicate the sender's personally identifiable information to the crypto service provider of the recipient, and vice versa.
Mastercard plans to expand the service to include more use cases, such as NFT transactions. To this end, Mastercard is partnering with public blockchain network organizations, including Aptos Labs, Ava Labs, Polygon, and the Solana Foundation.
To expand the service, Mastercard is partnering with public blockchain network organizations, including Aptos Labs, Ava Labs, Polygon, and the Solana Foundation.
Mastercard's new service is set to revolutionize cross-border transactions between users' wallets by ensuring compliance and verification, and promoting the use of cryptocurrency in the mainstream financial system. The service will help Mastercard comply with the "travel rule" requirement and expand the use of cryptocurrency in more use cases.