According to Mastercard’s (MA) head of crypto products and blockchain, the corporation will soon release a service that would verify and comply with all transactions between customers’ wallets, starting with cross-border transfers of digital assets.
On Friday, at Consensus 2023, Raj Dhamodharan unveiled the Mastercard Crypto Credential service, which would enable wallets to be recognized in transactions that are compatible with standards like as the Financial Action Task Force’s (FATF) “travel rule.”
In late 2021, Mastercard decided to buy CipherTrace, a popular blockchain analytics company, and immediately began integrating CipherTrace’s technology into its Mastercard Crypto Credential standardization effort.
Dhamodharan said that “the level of compliance and verification needed if two people want to transfer value from one country to another is complex.” How do you determine which wallets belong to which people? And how can you make sure that one side learns enough about the other?
As the developer of a cryptocurrency system that aids businesses in staying in accordance with the travel rule, cross-border transactions have been a primary focus for blockchain tracker CipherTrace. Any time more than $1,000 is exchanged in cryptocurrency between two parties, the rule requires the sending party’s crypto service provider to share the sender’s personal information with the receiving party’s crypto service provider.
Dhamodharan said that Bit2Me, Lirium, Mercado Bitcoin, and Uphold were involved in the rollout of the service on behalf of Mastercard. Companies are working on a pilot program to improve money transfers between the United States and corridors in Latin America and the Caribbean.