Payments giant Mastercard has now officially teamed up with Paxos Trust to offer a new service that would allow financial institutions to provide customers with cryptocurrency trading facilities and abilities.
According to this new venture by Mastercard, users would be allowed to buy, hold and sell cryptocurrencies in combination with Mastercard’s proprietary Crypto Secure solution to ensure excellent safety and security as well as legal compliance. The payments company said this new tool is expected to be launched in the current year’s fourth quarter.
Paxos is already providing a tool for the global payments company PayPal. This service was launched by PayPal back in late 2020.
Its new partnership with Mastercard now allows Paxos to offer cryptocurrency asset trading and custody services on behalf of banks. At the same time, Mastercard will implement its technology to combine cryptocurrency trading into bank interfaces.
According to reports, Mastercard reiterated its growing expertise in cryptocurrency tradi8ng and transactions as well as the company’s pledge to the market and cited the cryptocurrency-focused investments made by the company, according to Ajay Bhalla, president Mastercard’s cyber and intelligence unit.
According to the 2022 Mastercard New Payments Index, 29% of participants globally hold cryptocurrency as an investment, with another 65% indicating a choice for cryptocurrency services to be implemented by their current financial institution.
The size of Mastercard’s global network of financial institutions was emphasized by Paxos’ head of strategy, Walter Hessert.
Mastercard has presumably been engaged in various cryptocurrency and blockchain-related projects recently. Mastercard signed a partnership deal with the Coinbase exchange in January 2022 to allow its non-fungible token (NFT) users to make purchases using Mastercard’s cards.