Crypto Goes Mainstream: Mastercard's Bold New Plan

Crypto Goes Mainstream: Mastercard’s Bold New Plan

What to know:

Mastercard and other financial firms have long shifted from experimentation to real-world crypto solutions, Mastercard said in an interview with CoinDesk.
The company partnered with Notabene to integrate its Crypto Credential system, making digital asset transactions more secure and user-friendly by allowing transfers using email addresses instead of complex wallet addresses.
Mastercard sees tokenization and stablecoins as key to crypto’s future, focusing on improving on-ramp/off-ramp solutions and expanding Crypto Credential features in 2025.

Ha! You thought Mastercard was just a bunch of old folks playing with new toys? Think again! They’re moving beyond experimentation and into the real world, where the big boys play.

“Many of us in the industry are moving beyond experimentation; it’s actually real solutions,” said Raj Dhamodharan, Mastercard’s head of crypto and blockchain, with a wink and a nod. And, oh, they’ve already enabled stablecoin payments for financial institutions. Because, why not?

Last week, Mastercard announced a partnership with crypto compliance firm Notabene, which will integrate Mastercard’s Crypto Credential into its SafeTransact platform to make digital asset transactions more secure and user-friendly. Because, you know, security is key… or is it? 😏

The Crypto Credential system is a focus of Mastercard’s efforts to make crypto more mainstream. It allows users to send funds using familiar identifiers like email addresses rather than complex wallet addresses while ensuring compliance with regulatory standards. Because, who needs complex wallet addresses, right? 🤷‍♂️

“What is stopping [crypto] from going mainstream is really that consumers need to be able to find each other using what they already know,” Dhamodharan said, with a hint of sarcasm. Yeah, because that’s exactly what’s holding crypto back… 🙄

Mastercard’s goal, according to Dhamodharan, is to be a connector between traditional finance and blockchain networks, ensuring regulatory compliance while enabling new business models. Because, who doesn’t love a good business model? 💰

“As an industry as a whole, we need to be very open to making [crypto] available as broadly as possible,” he said, with a smile. Because, why not? 🤷‍♂️

Previously, Mastercard partnered with several crypto-native companies, including Binance. But, they parted ways in August 2023 after Binance faced a series of legal issues in the U.S. Because, who needs a little scandal, right? 🤦‍♂️

“Binance is a great partner of ours,” Dhamodharan said. “We continue to partner with them in a number of new ways where we can help them with on-ramp and off-ramp. Those are the continuing conversations.” Because, business as usual, right? 🙄

Taking crypto to the ‘next level’

Dhamodharan is also optimistic about the future of tokenization, which he said will require new business models to feed the growing demand for tokenization real-world assets by companies like BlackRock and Franklin Templeton. Because, who doesn’t love a good business model? 💰

“If there is more clarity over time in terms of how deposits can be represented in some form on the public chain, from a regulatory standpoint, I think this can even go to the next level in terms of how it can scale,” he said, with a hint of excitement. And, who knows, maybe it will! 🤞

In 2025, Mastercard’s focus lies on the on-ramp/off-ramp between crypto and the banking world, while making that process as smooth and safe as possible as well as expanding features and functions of its Crypto Credential product. Because, why not? 🤷‍♂️

“We think the future is going to be a world of both deposits because that’s where the money is, and that’s where people and businesses hold money and stablecoins, which can move on-chain easily and get settled easily.” Because, it’s all about the money, honey! 💸

2025-02-18 19:06

What to know:

Taking crypto to the ‘next level’

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