Mastercard is teaming with public blockchain developers Aptos Labs, Ava Labs, Polygon and The Solana Foundation on a new set of standards it’s dubbing Crypto Credential in an effort to build the trust of consumers, businesses and governments in the sector.
“Instilling trust in the blockchain ecosystem is a critical step towards realizing its full potential,” Mastercard head of crypto and blockchain Raj Dhamodharan said in a statement. “We need a way for trusted, compliant, and verifiable interactions to take place on public blockchain networks.”
Mastercard Crypto Credential “will establish a set of common standards and infrastructure that will help attest trusted interactions among consumers and businesses using blockchain networks,” the company said, noting that NFT projects require different verification requirements than those needed to send or receive cryptocurrency.
The payment processor said the new set of standards will “ensure that those interested in interacting across web3 environments are meeting defined standards for the types of activities they’d like to pursue.”
The news comes after a string of bankruptcies in crypto, from 3AC and Celsius to Voyager and FTX, have eroded trust in the industry. The value of cryptocurrencies has also tumbled from 2021 highs, and trading volumes have subsided.
Mastercard crypto standards
While the public blockchain networks including Aptos Labs and Polygon will help bring the standards to application developers in their ecosystems, Mastercard said that wallet providers Bit2Me, Lirium, Mercado Bitcoin and Uphold will also use the tools on an initial project to enable cross border transfers between the U.S. and Latin America and the Caribbean.
“Together, we’ll collaborate to enhance verification in NFTs, ticketing, enterprise and other payments solutions,” Dhamodharan said.
The move shows the continued interest that large, global payment processors have in crypto, despite reports of slowed down plans amid a widespread market decline over the past year. Mastercard, for instance, has worked with Binance to issue crypto-linked debit cards in Brazil and Argentina.
