Mastercard will debut crypto trading services next year that will enable financial firms, such as banks, to extend access to their clients.
Mastercard will launch its crypto trading services – Crypto Source – in the US, Israel and Brazil in early 2023, according to an interview with the firm’s president of cyber and intelligence Ajay Bhalla, which will allow users to buy and sell digital assets through their bank accounts.
The service will be offered through a partnership with digital asset firm Paxos Trust Co, which will provide crypto trading and custody series on behalf of banks so any related assets will not be held on their balance sheets.
While some banks have decided to capitalize on the crypto opportunity, most have remained on the sideline, citing concerns about price volatility, money laundering risks and other issues. But Mastercard has thousands of bank partners and its ability to enable lenders to provide crypto access without using the balance sheet could open the floodgates for mainstream adoption.
Crypto purchases] from your own bank where you have your bank account is a very big need from the market and something consumers want, Bhalla said while declining to disclose which banks will be first to participate.