Mastercard announces its crypto transaction service’s name
Yesterday, Mastercard unveiled its latest innovation, the "Mastercard Crypto Credential", a unique feature designed to streamline the process for crypto exchange users, enabling them to transfer and receive digital currencies using aliases. This service mirrors the functionality of existing name service solutions such as the Ethereum Name Service.
An included video details the procedure, which is reminiscent of conducting a bank transfer: users are assigned an alias that they use for transactions across participating exchanges. An essential step in the process is the verification of the alias' wallet to ensure it is compatible, thereby avoiding transactions that could result in lost funds due to asset or blockchain incompatibility.
Platforms like Bit2Me, Lirium, and Mercado Bitcoin have already integrated the capability for live transactions, enhancing the efficiency of blockchain transactions for users in European and Latin American regions.
Walter Pimenta, Mastercard's executive vice president for Product and Engineering in Latin America and the Caribbean, shared, "Mastercard is deeply committed to enhancing its technological framework, adhering to the highest standards, and forging robust partnerships to deliver payment solutions that are not only secure and straightforward but also cutting-edge. With the exponential growth of interest in digital assets and blockchain technology, both in Latin America and globally, it's imperative to ensure the integrity and trustworthiness of transactions over public blockchains. We are excited to join forces with our esteemed partners to drive the Mastercard Crypto Credential initiative towards its fullest potential.
Now, residents of countries such as Argentina, Brazil, Chile, France, among others, can enjoy the convenience of conducting both cross-border and local transactions over various currencies and blockchains. The initiative continues to broaden its reach, with the Brazilian exchange Foxbit entering the Mastercard Crypto Credential pilot program, and users of Lulubit now have access through integration with Lirium.
The Mastercard Crypto Credential framework is geared towards ensuring that every transaction on blockchain networks is authenticated, verifying that all users adhere to specific verification criteria and that the recipient's wallet is compatible with the digital asset being sent. This mechanism enhances transaction efficiency by managing metadata exchange, obviating the necessity for consumers to track the supported assets or chains of recipients, thus fostering a heightened level of trust and assurance.
This service also accommodates the exchange of Travel Rule information, satisfying regulatory mandates for transparency in cross-border financial activities to deter illicit transactions.
The announcement also hints at the future potential of peer-to-peer transactions to extend into areas such as NFT markets, ticketing systems, and diverse payment methodologies.
