Mastercard, one of the world’s largest financial services companies, has introduced a new Web3 solution that aims to improve user verification standards and lower the risks associated with digital assets. The solution, known as the “Mastercard Crypto Credential,” will provide users with a unique identifier that instantly verifies whether the address to which funds are being sent has been vetted by Mastercard and operates according to corporate standards.
The new solution is expected to support compliance by exchanging critical metadata needed to comply with regulations, lowering the risk of bad actors engaging in malicious activity and loss of funds. Additionally, even if a bad actor manages to get a unique identifier, Mastercard can quickly revoke its verification if it engages in illegal activity.
Mastercard has collaborated with Bit2Me, Lirium, Mercado Bitcoin, and Uphold, as well as blockchain providers Aptos Labs, Ava Labs, Polygon Labs, and The Solana Foundation. Mastercard will also use the CipherTrace suite of services to verify addresses and support Travel Rule compliance for cross-border transactions.
The new solution follows Mastercard’s recent collaboration with Polygon on a non-fungible token (NFT) gated musician accelerator program that provides Mastercard Music Pass NFT holders free access to materials, unique artificial intelligence (AI) tools, and other experiences.
In comparison, according to a recent tweet by Cuy Sheffield, the company’s head of crypto, Visa, a competitor of Mastercard, has also made strides in the crypto space by launching a project focused on stablecoin payments. According to the project’s job posting, the company is “building next-generation products to facilitate commerce in everyone’s digital and mobile lives” and is looking for someone with experience in Web3 and blockchain technologies.
Mastercard’s new Web3 solution is expected to revolutionize the digital asset space by lowering the risk of fraudulent activity and raising user verification standards. As the crypto sector develops, more companies are expected to follow suit by investigating ways to provide safe and secure financial services to users.