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Mastercard Introduces New Bank Crypto Program in Collaboration with Paxos

Mastercard is collaborating with New York-based blockchain technology startup Paxos to establish a programme that will make it simpler for conventional financial institutions to provide cryptocurrency trading by guaranteeing regulatory compliance and security.

Mastercard is introducing crypto trading capabilities to banks with Paxos

According to a Monday release, the worldwide payment processing giant has created “Crypto Source,” a service that will operate as a link between banks and Paxos. Paxos will offer cryptocurrency custody services and trading, while Mastercard will incorporate them into bank interfaces.

Mastercard will also manage regulatory security and compliance, two significant barriers to banks investing in crypto assets. Customers may use the company’s security management system to check transactions and adhere to anti-money laundering regulations.

Mastercard’s cyber and intelligence section head Ajay Bhalla emphasised the payment company’s expanding expertise in crypto and commitment to the booming field.

Bhalla also mentioned Mastercard’s recent crypto investments, including purchasing crypto analytics business CipherTrace in September 2021 and virtual identity verification firm Ekata last April.

Amid a terrible slump in coin and token values across the broader crypto market, Mastercard’s newest crypto initiative comes despite a catastrophic downtrend in coin and token prices across the broader cryptocurrency industry.