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Mastercard today announced the “Mastercard Crypto Credential,” a feature that allows users of cryptocurrency exchanges to send and receive cryptocurrency through an alias, similar to name service solutions such as the Ethereum Name Service.
The announcement video outlines a process similar to a wire transfer: users receive an alias to send and receive funds between supported exchanges, and this alias is verified for wallet compatibility, preventing the transaction if the wallet does not support the asset or blockchain, preventing loss of funds.
Live trading functionality has been enabled on exchanges such as Bit2Me, Lirium, and Mercado Bitcoin, facilitating blockchain trading across the Latin American and European corridors.
“Mastercard continues to invest in technology, standards and partnerships to bring safe, simple and secure payments to the forefront,” said Walter Pimenta, executive vice president, Product and Engineering, Latin America and the Caribbean, Mastercard. “As interest in blockchain and digital assets continues to grow in Latin America and around the world, it is essential that we continue to provide trusted, verifiable interactions across public blockchain networks. We look forward to working with these dynamic partners to realize the full potential of Mastercard Crypto Credentials.”
Users in countries such as Argentina, Brazil, Chile and France can now make cross-border and domestic remittances across multiple currencies and blockchains. This expansion continues as Brazilian cryptocurrency exchange Foxbit joins the Mastercard Crypto Credential pilot ecosystem, giving Lulubit users access through its Lirium integration.
The Mastercard Crypto Credential ensures that interactions on the blockchain network are verified, ensuring that users meet a set of validation criteria and that the recipient's wallet supports the transferred assets. The system simplifies transactions by exchanging metadata, eliminating the need for consumers to know what assets or chains the recipient supports, increasing trust and certainty.
Additionally, the Mastercard Crypto Credential supports the exchange of Travel Rule information, a regulatory requirement for cross-border transactions to maintain transparency and prevent illicit activity.
The announcement emphasized that peer-to-peer transactions are just the beginning, with future use cases including NFTs, ticketing, and other payment solutions.
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