- Mastercard intends to become the ‘bridge’ between Paxos, a cryptocurrency trading platform Paypal uses to offer similar services and banks, according to the company
- According to Jorn Lambert, Mastercard’s chief digital officer, many consumers are intrigued and interested in crypto but don’t feel safe with ordinary crypto exchange platforms
- Lambert further stated that Mastercard would establish various regulations to ensure higher security in crypto exchange platforms
- At least 60% of crypto non-users have claimed to only test crypto trading if an existing bank offers them the platform
With the recent crypto trends flooding the Internet, many organizations have sought new partnerships to stay on top. Google recently partnered with Coinbase creating waves throughout not only the crypto world but also the corporate world.
Mastercard, in response, has taken another step forward in crypto trading by partnering with Paxos Trust Company. They announced a new Crypto Source program that will aid financial institutions in offering crypto trading to their users. Will this new Paxos-MasterCard partnership finally bridge the world of the old and new financial sectors?
The bridge between crypto trading and the traditional financial sector
The payment giant Mastercard has recently dedicated its efforts to move into the crypto world. It announced on 17th October its desire to aid the traditional financial sector usher in the new age of crypto and decentralized finances.This new crypto trend has caused a frenzy within the crypto market, which might signify a recent change. Mastercard intends to become the ‘bridge’ between Paxos, a cryptocurrency trading platform Paypal uses to offer similar services and banks, according to the company.
This new Paxos-Mastercard partnership will handle all the technicalities surrounding the crypto trading services and the security involved.
Unfortunately, many still doubt this buzzing crypto trend, all due to crypto volatility. Granted, bitcoin has tried to make similar moves, but the fluctuation of prices surrounding them has proven difficult. In addition, the number of crypto hacks has significantly risen over the years.
Mastercard reassured sceptical users that the demand for crypto has consistently risen despite the turmoils it has faced over the years. At least 60% of non-users have claimed to only test crypto trading if an existing bank offers them. This very want forms the basis of Crypto Source. To give a platform for new crypto users to use cryptocurrencies and see their benefits for themselves safely.
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According to Jorn Lambert, Mastercard’s chief digital officer, many consumers are intrigued and interested in crypto but don’t feel safe with ordinary crypto exchange platforms. If financial institutions offered the services, the likelihood of participation would skyrocket.
Large investment banks like Goldman Sachs, Morgan Stanley and JPMorgan have dedicated crypto teams who have come up with strategies to offer crypto trading services but are yet to act on them. If banks were to embrace this Paxos-MasterCard partnership, it would mean significant competition for Coinbase and other crypto exchange operations globally.
How will Mastercard handle the insecurity of crypto
Mastercard reassures that this move will ensure that banks are on the right side of the crypto compliance rules. In addition, Crypto Source will utilize a previous venture Mastercard undertook, Crypto Secure.
The partnership between Mastercard and Ciphertrace birthed this new blockchain security program. The main aim was to establish a new crypto security feature that could combat the recent crypto trends of ongoing hacks. This ensures that each user can feel safe when they deposit or use cryptocurrency.
The payment company also ensured that Crypto Source would closely monitor each transaction acting as an anti-money-laundering and identity monitoring service. This prevents the bad actors from crypto trading from spewing into legitimate banking transactions.
Paxos-Mastercard partnership intends to pilot the product for the first quarter of next year to ease any doubts about the system. It will expand its reach to other financial sectors if it satisfies both banks and crypto traders.
Will the new crypto source be affected by the crypto winter
The possibility of a new crypto winter is low among crypto investors. Crypto trading has gradually reduced, and other crypto coins have increased their token circulation. This is to accommodate those who will take advantage of the crypto winter.
Lamberts said that a mere crypto winter will not deter the Paxos-MasterCard partnership.’. It’s part of the trade, and down the road, the transaction rate will gradually increase and fuel Mastercard’s business. Merely thinking that a crypto winter would be enough to slow the progress of cryptocurrency is shortsighted.
Lambert further stated that Mastercard would establish various regulations to ensure a higher degree of security in crypto exchange platforms. By the time Crypto Source is fully integrated will resolve many issues within crypto trading.
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This crypto trend comes with a dash of irony; the main goal for cryptocurrency was to replace traditional financial institutions such as Mastercard and Visa. This new Paxos-MasterCard partnership is an unforeseen development in the crypto market.
Its central concept behind Crypto Source is to bridge decentralized finance and crypto to traditional financial systems.
This ensures that both worlds can benefit from each other; crypto would benefit from the safety and reputation of banks while banks can adapt to the current evolution of crypto trading. A symbiotic relationship that ensures that both are winners.