Mastercard’s Crypto Credential Goes Live with Pilot Transactions
For the first time, crypto exchange users can send and receive cryptocurrency using Mastercard Crypto Credential aliases instead of long and complex blockchain addresses.
The pilot transaction capabilities are now live on the Bit2Me, Lirium, and Mercado Bitcoin exchanges, simplifying and securing blockchain transactions between Latin American and European corridors.
Users in Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay can now send cross-border and domestic transfers across multiple currencies and blockchains.
Building on this momentum, Foxbit has joined the Mastercard Crypto Credential pilot ecosystem, extending the reach to more consumers. Additionally, Lulubit users will gain access through its integration with Lirium.
Mastercard Crypto Credential has gone live with its first peer-to-peer transactions! This solution not only replaces complex wallet addresses with user-friendly aliases, but also makes sending #blockchain transactions secure, transparent and accessible.
— Mastercard News (@MastercardNews) May 29, 2024
Learn more:… pic.twitter.com/WgY6aTaQHP
Enhancing Blockchain Interactions
Mastercard Crypto Credential helps verify interactions among consumers and businesses using blockchain networks.
It ensures that users meet a set of verification standards and confirms that the recipient’s wallet supports the transferred asset.
By exchanging metadata, Mastercard Crypto Credential eliminates the complexity of determining which assets or chains are supported by the recipient, bringing more trust and certainty to transactions.
The system supports the exchange of Travel Rule information for cross-border transactions, a regulatory requirement to ensure transparency and prevent illegal activities.
While peer-to-peer (P2P) transactions are the first use case, Mastercard Crypto Credential aims to support other applications such as NFTs, ticketing, and various payment solutions, depending on market and compliance requirements.
Operational Workflow
Users are first verified under Mastercard Crypto Credential standards and receive an alias to send and receive funds across supported exchanges.
When a user initiates a transfer, the system verifies that the recipient’s alias is valid and that the recipient’s wallet supports the digital asset and blockchain.
If the wallet does not support the asset or blockchain, the sender is notified, and the transaction is halted, protecting both parties from potential fund losses.
Next Steps
A select group of crypto wallet users will leverage Mastercard Crypto Credential on a first-come, first-serve basis, with wider availability rolling out to over 7 million users across participating exchanges in the coming months.
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