Mastercard Formed A Partnership With Paxos To Help Banks Offer Crypto Trading

Mastercard will help banks offer cryptocurrency trading. The payments giant will act as a “bridge” between Paxos, a crypto trading platform already used by PayPal, and banks.

Mastercard will handle regulatory compliance and security — two core reasons banks cite for avoiding the asset class. Mastercard’s chief digital officer, Jorn Lambert, told CNBC in an interview:

“There’s a lot of consumers out there that are really interested in this, and intrigued by crypto, but would feel a lot more confident if those services were offered by their financial institutions.”

Lambert told CNBC that despite the downturn market, the asset class is still in high demand.

“It would be shortsighted to think that a little bit of a crypto winter heralds the end of it — we don’t see that,” he said.

Furthermore, according to a recent study, 60% of respondents would like to have exposure to Bitcoin and cryptocurrencies through their bank.

“It’s a little scary to some people still,” he stated.

According to Mastercard, its role in this is to ‘keep banks on the right side of regulation by adhering to crypto compliance regulations, validating transactions, and providing anti-money-laundering and identity monitoring services.’

Mastercard’s CFO stated:

“It’s hard to believe that the crypto industry will truly go mainstream without embracing the financial industry as we know it.”

Mastercard expects to pilot this product in Q1 2023 and then crank the handle to expand into other geographies. Lambert declined to say which institutions had already agreed to participate in the scheme.

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