Mastercard has launched Crypto Credential, a feature that allows crypto transfers using aliases. This feature is now live on several crypto exchanges, including Bit2Me and Lirium. Future expansion plans will cover NFTs, ticketing, and various payment solutions.
Mastercard has launched its Crypto Credential, which lets users send and receive cryptocurrencies using easy-to-remember aliases instead of complex blockchain addresses. Introduced in 2023, this peer-to-peer feature is the first real-world application of Mastercard Crypto Credentials. The company plans to expand this feature to include NFTs, ticketing, and other payment solutions.
Mastercard Crypto Credential Simplifies Blockchain Transactions
Mastercard has introduced its Crypto Credential to simplify blockchain interactions by verifying user identities and ensuring compatibility between digital assets and recipient wallets. This system enhances transaction trust and certainty by eliminating the need for users to know which assets or chains the recipient supports. Additionally, the platform supports the exchange of Travel Rule information to maintain transparency and prevent illegal activities.
Under Mastercard Crypto Credential standards, users undergo verification and receive an alias for transactions. The system verifies the recipient’s alias and wallet compatibility before proceeding. It also notifies the sender if there are any issues, preventing potential loss of funds.
Mastercard’s Crypto Credential feature is now live on several crypto exchanges, including Bit2Me, Lirium, and Mercado Bitcoin. Other exchanges like Foxbit and Lulubit are the latest to integrate this feature, further expanding its reach. Users in countries such as Argentina, Brazil, France, and Spain can now conduct cross-border and domestic transfers in multiple currencies and across different blockchains.
Initially, a select group of users will leverage this feature. In the coming months, Mastercard plans to extend availability to over seven million users across participating exchanges. This expansion signifies Mastercard’s commitment to enhancing the usability and accessibility of cryptocurrencies.
Mastercard’s Crypto Credential: Enhancing Trust in Blockchain Transactions
Walter Pimenta, Executive Vice President of Product and Engineering for Latin America and the Caribbean at Mastercard, shared his thoughts on the new Crypto Credential feature. “As interest in blockchain and digital assets continues to surge in Latin America and around the world, it is essential to keep delivering trusted and verifiable interactions across public blockchain networks,” Pimenta said.
Mastercard’s initiative is part of a broader trend in the finance industry, where traditional financial institutions increasingly integrate blockchain technology and cryptocurrencies into their services. Visa, for example, has been exploring ways to enable Ethereum gas fee payments via its cards.
Visa uses the ERC-4337 standard and a special smart contract called “paymaster.” This approach allows users to pay gas fees off-chain without needing to hold the native tokens of a particular blockchain.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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