Global payment leader Mastercard has been increasing its venture into the digital assets sector. The firm now has new services which are set to cement its position as a crypto services provider. Particularly, the Mastercard Crypto Credential and the development of a Multi-Token Network (MTN) are set to provide users with 24/7 and user friendly payment options.
Mastercard’s venture into blockchain-based services depicts its commitment to shifting its strategy to fit modern day user needs. Furthermore, the company has established itself as a leader in the traditional finance (TradFi) sector and the venture into crypto payment solutions could further improve adoption of digital assets.
Mastercard ‘Crypto Credential’; A Gateway to Secure Crypto Payments
Spearheading its venture into crypto, Mastercard announced its Crypto Credential service in May. 29, 2024. This service was designed to make it possible for users to create a Mastercard username which facilitates peer-to-peer transactions through Bitcoin and other cryptocurrencies.
These transactions are facilitated via crypto exchanges such as Bit2Me, Mercado Bitcoin and Lirium. Mastercard developed this solution to solve issues related to lengthy wallet addresses which often results in loss of funds due to even a small mistake.
Particularly, the Crypto Credential service comes in handy to notifying the sender if the recipient’s crypto wallet supports the crypto or blockchain for the transaction, hence preventing loss of funds. Additionally, the service truncates the wallet addresses hence making it difficult for scammers to exploit users.
Multi-Token Network; Robust Infrastructure for Crypto Transactions
Through leveraging its global presence, Mastercard aims to standardize crypto transactions through the Multi-token Network (MTN) service. Launched in 2023 this service promotes interoperability between traditional finance systems and web3 financial systems. In simple terms, the MTN is more of a peer-to-peer payment application that allows users to perform transactions using cryptocurrencies.
Mastercard has designed the MTN service to serve its customers and merchants as well as other financial institutions. In fact, upon its launch the executive vice president of blockchain and digital assets at Mastercard, Raj Dhamodharan, highlighted that the platform is more of the American Venmo or Zelle.
The MTN combines on-chain and off-chain asset flows made possible through the Mastercard private blockchain. This allows commercial banks to tokenize client deposits, mint, burn, and transfer tokens. For customers, they get secure, faster and seamless payments as well as real-time interbank settlement without need for complex blockchain integration.
Mastercard’s Venture Into Crypto; Expert Opinion
Mastercard’s groundbreaking solutions; MTN and Crypto Credential services have attracted several expert opinions. Particularly, in an exclusive insight offered to Blockchain News, James Toledano – the Chief Operating Officer at Unity Wallet, had the following to say about Mastercard’s new services.
“This marks a real shift in how seriously traditional finance is taking digital assets. Mastercard has long been more crypto-friendly, proactive and pragmatic in its approach than Visa. Additionally many early crypto debit and prepaid cards ran on its rails. However, Visa seems to be onboard the crypto bandwagon now.”
Toledano also acknowledged how Mastercard is championing the adoption of crypto through the two services. “With the Crypto Credential and Multi-Token Network (MTN), Mastercard isn’t just experimenting, it’s building infrastructure that brings crypto closer to real-world use and mainstream finance,” Toledano said.
The initiatives by Mastercard truly depict the changing financial ecosystem with crypto adoption picking up pace. With continued partnerships with JPMorgan and Standard Chartered, Mastercard is set to “put pressure on other financial institutions to fast-track their crypto strategies.” Otherwise, these financial firms risk lagging behind in an ever-changing sector.
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