MasterCard Crypto Credential launches with first peer-to-peer pilot transactions
Raphaël Wernert
5/31/24
For the first time, users of crypto exchange platforms will be able to send and receive cryptocurrencies using Mastercard Crypto Credential aliases, instead of the usual long and complex blockchain addresses. The Bit2Me, Lirium and Mercado Bitcoin platforms now enable these transactions, facilitating blockchain exchanges simply and securely between Latin America and Europe. Users in Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland and Uruguay will be able to make cross-border and domestic transfers across multiple currencies and blockchains.
Foxbit is the latest crypto wallet provider to join the Mastercard Crypto Credential pilot ecosystem, extending the reach to more consumers. Lulubit users will also have access to the service through its integration with Lirium.
Mastercard Crypto Credential helps verify interactions between consumers and businesses using blockchain networks. It ensures that the user has met a set of verification standards and confirms that the recipient's wallet supports the transferred asset. Through the exchange of metadata, Mastercard Crypto Credential removes the complexity for the consumer of knowing which assets or chains are supported by the person they wish to send funds to, bringing more trust and certainty to these transactions.
Mastercard Crypto Credential supports the exchange of information under the Travel Rule for cross-border transactions, a regulatory requirement designed to ensure transparency and prevent potentially illegal activities. The P2P transaction is the first in a series of potential applications that Mastercard Crypto Credential aims to support, including NFTs, ticketing and other payment solutions depending on market and compliance requirements.
The exchange first verifies a user against Mastercard Crypto Credential standards. Then, the user obtains an alias to send and receive funds on all supported exchange platforms. When a user initiates a transfer, Mastercard Crypto Credential checks that the recipient's alias is valid and that the recipient's wallet supports the associated digital asset and blockchain. If the receiving wallet does not support the asset or blockchain, the sender is informed and the transaction does not take place, protecting all parties from the potential loss of funds.
This milestone marks the first real application of the Mastercard Crypto Credential vision, unveiled at Consensus in 2023. Mastercard Crypto Credential's live P2P transactions represent the potential to expand and support the domestic and cross-border remittance market.
"Mastercard continues to invest in its 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 Caribbean at Mastercard. "As interest in blockchain and digital assets continues to grow in Latin America and globally, it is critical to continue to provide reliable and verifiable interactions on public blockchain networks. We are delighted to be working with this dynamic set of partners to bring Mastercard Crypto Credential closer to realising its full potential."
"We are proud to continue deepening our alliance with Mastercard, with whom we share a commitment to innovation and the development of solutions that promote payment alternatives through the use of crypto-assets," said Leif Ferreira, CEO and co-founder of Bit2Me.
"For Foxbit Group, working with a leader like Mastercard reinforces our commitment to adapt to market needs and offer solutions that not only accompany, but also enrich our users’ experience in the dynamic world of cryptocurrencies," said Ricardo Dantas, CEO of Foxbit Group. "This is an important step in strengthening our presence in the cryptocurrency market. Our collective work, which includes participation in the Mastercard Crypto Credential ecosystem as well as the launch of the Foxbit Card, aligns perfectly with our mission to expand the usability and accessibility of cryptocurrencies, offering our customers more ways to manage and leverage their digital finances."
"At Lirium, we are focused on providing regulated crypto services in Latin America and the rest of the world," said Martin Kopacz, chief operating officer of Lirium. "With Mastercard Crypto Credential, we can ensure traceability of all blockchain transactions with a superior level of compliance, while providing an exceptional user experience."
"Mercado Bitcoin is proud to partner with Mastercard in its revolutionary Crypto Credential pilot. As a Latin American leader in innovative blockchain solutions, such as real assets and the Brazilian CBDC, we believe in Mastercard's initiative and its potential to pave the way for a faster future of global financial transactions," said Roberto Dagnoni, CEO of 2TM, owner of Mercado Bitcoin.
A select group of crypto wallet users will use Mastercard Crypto Credential on a first-come, first-served basis. Wider availability will roll out to over 7 million users on participating exchange platforms over the coming months.
