Digital asset transfer simplification initiative: Mastercard introduces cryptographic credential prototype

Mastercard Introduces Crypto Credentials for Secure Blockchain Transactions

Mastercard has announced the launch of its new product, Crypto Credentials, designed to provide a secure and standardised approach to interactions on blockchain networks. The product will be initially offered to a select group of crypto wallet users, with plans to expand to more than 7 million users across participating exchanges over the coming months.

Crypto Credentials are a set of standards and infrastructure that aim to verify the identity of users and ensure the authenticity of transactions. Before allowing the use of an alias, Mastercard Crypto Credentials verify user identity under its own standards. This verification process helps eliminate the complexity of knowing which assets or chains are supported by the recipient when sending funds, making cross-border and domestic transfers across multiple currencies and blockchains smoother and more secure.

If any conditions are not met, the sender is notified, and the transaction does not proceed. Mastercard Crypto Credentials also authenticate the recipient alias whenever a transaction is initiated and confirm that the recipient's wallet supports the digital asset and the chain being used.

Mastercard Crypto Credentials were first provided by Banco Bradesco in Brazil and are currently live on Bit2Me, Lirium, and Mercado Bitcoin exchanges. Foxbit is the latest crypto wallet provider to join Mastercard's Crypto Credential pilot ecosystem. The product is initially available in Europe and Latin America, including countries such as Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay.

Walter Pimenta, executive vice president of Product and Engineering, Latin America and the Caribbean at Mastercard, commented on the announcement, stating that Mastercard Crypto Credentials are intended to address the increasing interest in blockchain and digital assets in Latin America and around the world. Mastercard has piloted its Crypto Credentials product for real-world applications, with the goal of delivering trusted and verifiable interactions across public blockchain networks.

This announcement comes amidst growing concerns about the security of cryptocurrency transactions. Earlier this month, a crypto user was exploited for $69 million through address poisoning, highlighting the need for more secure and standardised approaches to cryptocurrency transactions. Mastercard Crypto Credentials aim to address these concerns and provide a more secure and streamlined experience for crypto users.

Digital asset transfer simplification initiative: Mastercard introduces cryptographic credential prototype