To connect with application developers, the payments industry behemoth is collaborating with Aptos Labs, Ava Labs, Polygon, and the Solana Foundation.
As blockchain regulation is still under development, Mastercard is looking to build the infrastructure needed to more effectively attest transactions, the company said on Friday.
The project, known as Mastercard Crypto Credential, will establish standards for verification and provide the technology required for diverse use cases throughout the market.
Raj Dhamodharan, head of crypto and blockchain at Mastercard, stated in a blog post on the company’s website that central banks and financial institutions have attempted to address security and compliance weaknesses as the scope of blockchain technology has increased.
He said in the essay, “But to successfully implement these principles and establish scalable use cases, we need a method for trustworthy, compliant, and verifiable interactions to take place on public blockchain networks.
For instance, the amount of identification necessary to send and receive digital assets between crypto wallets and NFTs is very different from each other, according to the firm.
According to Mastercard’s blog post, the Mastercard Crypto Credential would offer simple aliases to make it easier for users to exchange wallet addresses and utilize metadata to specify wallet properties to guarantee that only intended transactions are carried out.
The new service would also make use of CipherTrace, a company it purchased in 2021 that specializes in crypto intelligence, to validate addresses and ensure compliance with laws governing international transactions.
The Solana Foundation, Aptos Labs, Ava Labs, Polygon, and others are slated to assist in making Mastercard’s new product available to app developers.
When contacted for more comment, a Mastercard spokeswoman did not respond right away.
Despite market volatility at the beginning of 2023, Mastercard and competitor Visa kept working on new crypto card agreements.
For instance, Binance and Mastercard introduced a card in Brazil in January that enables the nation’s exchange customers to make purchases and settle payments with cryptocurrency.
According to persons familiar with the situation, Reuters reported in February that Mastercard and Visa will halt their collaborations with cryptocurrency companies in the wake of several industry-related bankruptcies.
At the time, Visa refuted the allegation and stated that it would keep an eye on any changes to the law governing cryptocurrencies. A week or so later, the business introduced a debit card in collaboration with Gate Group, the organization behind the cryptocurrency exchange Gate.io.
More recently, Dhamodharan told Reuters that the business planned to grow its crypto card programs and is “quite enthusiastic” about blockchain technology in general.