By Michael Scott
Global giant providing financial services announced the release of a new Web3-based solution to guarantee secure transactions. The new solution aims at guaranteeing verification complies with the set standards by Mastercard.
Enhanced User Verification to Avert Exploit
The enhanced user verification targets erode opportunities that bad actors could leverage to lodge exploits within the digital asset space. The solution unveiled during the financial provider statement conveyed on April 29 is identified as Mastercard Crypto Credential (MCC).
The company released an explainer video via its official Twitter, confirming that Mastercard plans to formulate a platform for Web3-based and blockchain-powered service providers to facilitate secure transactions. It aims to utilize the Crypto Credential in setting standards universally applicable irrespective of the transaction amount.
Mastercard Partners with Wallet Providers and Blockchain Firms
The statement also posted in the Mastercard News echoed the pronouncement by Mastercard during the Consensus23 that it aims to instill trust within the blockchain ecosystem via the Crypto Credential. Mastercard update via Twitter lauds the input of Bit2Me Global, MercadoBitcoin, and Upholdlnc. Additionally, it acknowledges public blockchain network entities alongside Aptos Labs for their critical input.
The solution aims at issuing the user’s unique identifier to the MCC. The theoretical explanation for this position is enabling individuals to verify target addresses. The instant verification of the address that individuals who desire to remit funds are possible since Mastercard already vets such in strict compliance with the set standards.
Mastercard Prioritizing Strict Compliance with In-house Standards
Mastercard considers the MCC solution as one designed to facilitate strict compliance with the in-house standards. This is possible since the solution features a continual exchange of critical metadata deemed necessary to meet the regulations. Its accomplishment is set to minimize the opportunities that bad actors scout to launch their exploit.
Mastercard has since clarified that the new solution allows it to swiftly revoke verification where it detected that the address holder perpetrated the wrongdoing. This possibility allows quick correction even where the bad actors slipped the scrutiny cracks and secured the unique identifier.
The statement released by Mastercard indicates that the MCC solution would bank on various partners. The wallet partners with Mastercard include Lirium, Uphold, Mercado Bitcoin, and Bit2Me. Mastercard anticipates similar support from blockchains firms, including Avalanche, Solana, Atpos, and Polygon.
Meanwhile, Mastercard is set to leverage the suite of services provided by CipherTrace. Particularly, CipherTrace Traveler will enable Mastercard to expedite address verification while supporting the Travel Rule to ensure compliance in cross-border transactions.
Mastercard and Visa Reinforce Exposure to Digital Assets
The revelation of a web3-based verification solution shows Mastercard continually reinforces exposure to digital assets. The enhanced verification initiative comes several weeks after Mastercard launched the nonfungible token (NFT) accelerator initiative for gated musicians through a supportive framework by Polygon.
The NFT accelerated program targets free access to unique artificial intelligence (AI). The AI will relay informative materials to the Music Pass NFT holders.
Mastercard initiatives are gaining industry-wide recognition, with its primary competitor Visa making crypto moves. Recently, Cuy Sheffield, who heads the crypto unit in Visa, revealed via an April 24 tweet the beginning of a stablecoin payments-focused initiative.
While Visa is yet to disclose much about its involvement in stablecoin payments, preparations are in top gear. Sheffield revealed job listing roles confirming the company’s advanced plans to build a generation of digital-oriented products to ease commerce. The listing targets applicants with demonstrated experience in blockchain-based and Web3 technologies.
Scouting for Expanded Scope in Cryptos
The head of the blockchain at Mastercard, Raj Dhamodharan, restated its devotion to expanding involvement in crypto assets. The executive indicated that Mastercard seeks to expand into crypto payment by partnering with various crypto firms.
Dhamodharan observed that the company seeks expansion into the crypto sector while complying with the strict requirements given the increased regulatory scrutiny. The executive restated that Mastercard would pursue initiatives that guarantee safe crypto-related operations aligned with its value proposition.
Dhamodharan statement revealed that Mastercard has partnered with Nexo, Gemini, and Binance. The partnership targets the introduction of crypto-linked payment cards. In particular, the Binance cars will facilitate users to settle obligations in conventional currencies. The transactions would feature funding from the crypto holdings within the exchange.