Mastercard to help banks offer crypto trading; executive says crypto is "about to go mainstream"

By: Mark Jessy

October 18, 2022 5:12 AM

Mastercard, a global leader in digital payments, has launched a new program called Crypto Source to help banks provide cryptocurrency trading and other related services to their customers. Mastercard and Paxos Trust Company are working together to back this initiative. Cryptocurrency is "on the cusp of really going mainstream," according to a Mastercard executive.

Mastercard on Monday unveiled a new program called Crypto Source, which will give "banks the ability to engage in cryptocurrency trading."

According to the announcement, Crypto Source will "enable financial institutions to bring secure crypto trading capabilities and services to their customers" by teaming up with regulated and licensed crypto custody providers.

"In addition to proven identity, cyber, security, and advisory services, Mastercard's financial institution partners will have access to a full suite of buy, hold, and sell services for a variety of cryptocurrency assets."

As the payments firm emphasized, "this Crypto Source offering is complemented by Mastercard Crypto Secure to bring additional security to the crypto ecosystem." Pilot programs for Crypto Source are currently in the works.

Mastercard elaborated that it is "expanding its partnership and work with Paxos Trust Company, a leading regulated blockchain infrastructure platform," in order to back this initiative.

"Mastercard and Paxos will work together to make it possible for banks to let their customers trade and store cryptocurrency by integrating Paxos' services into the banks' user interfaces."

A statement from Mastercard's chief digital officer, Jorn Lambert, reads as follows: "Our crypto product lines will provide option at scale and continue to deliver one-of-a-kind possibilities to financial firms as they pursue to offer new, advanced services to their clients."

"Our goal is straightforward: to investigate crypto and the underlying digital asset technology so that we can offer customers more flexible payment options."

As CNBC reported, Lambert said of the launch of Crypto Source, "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... It's a little scary to some people still."

Mastercard recently talked about the five main things it is doing to make cryptocurrency payments "a normal way to pay."