Mastercard has rolled out its Crypto Credential, enabling users to send and receive cryptocurrencies through aliases rather than intricate blockchain addresses.
Unveiled in 2023, this peer-to-peer (P2P) innovation represents the initial practical implementation of Mastercard Crypto Credentials. The company aims to broaden this capability to encompass NFTs, ticketing services, and various payment solutions.
Mastercard Wants to Make Blockchain Transactions Safe and Easy
Mastercard Crypto Credential streamlines blockchain transactions by authenticating users and guaranteeing that digital assets are compatible with recipient wallets. By removing the necessity for consumers to be aware of the assets or chains that the recipient supports, this approach improves transaction certainty and confidence. In order to uphold transparency and stop illicit activity, the website also facilitates the sharing of information on Travel Rules.
Users are verified and given an alias for transactions per Mastercard Crypto Credential requirements. Before continuing, the system confirms that the recipient's alias and wallet are compatible. Additionally, in order to avoid any financial loss, it alerts the sender if there are any problems.
Mastercard's Crypto Credential feature is now operational on various cryptocurrency exchanges such as Bit2Me, Lirium, and Mercado Bitcoin. Additionally, Foxbit and Lulubit are among the latest platforms to adopt this feature, broadening its accessibility. Users in countries like Argentina, Brazil, France, and Spain can now execute cross-border and domestic transfers across multiple currencies and blockchains.
Initially, a select group of users will have access to this feature, with Mastercard planning to extend availability to over seven million users across participating exchanges in the upcoming months. This expansion underscores Mastercard's dedication to improving the usability and accessibility of cryptocurrencies.
Walter Pimenta, Executive Vice President of Product and Engineering, Latin America and the Caribbean at Mastercard, expressed his thoughts on this advancement, emphasizing the importance of delivering trusted interactions on public blockchain networks amidst increasing interest in blockchain and digital assets worldwide.
Mastercard's initiative aligns with a broader trend in the finance sector, where traditional financial institutions are progressively integrating blockchain technology and cryptocurrencies into their offerings. For instance, Visa has been exploring methods to facilitate Ethereum gas fee payments through its cards, leveraging the ERC-4337 standard and a specialized smart contract called "paymaster." This approach enables users to settle gas fees off-chain without the need to hold native tokens of a specific blockchain.
May 2024, Cryptoniteuae