Mastercard Unveils Web3 User Verification Solution to Tackle Bad Actors in the Crypto Space
Mastercard Takes On Bad Actors with New Web3 User Verification Solution
In an effort to enhance user verification standards and combat bad actors in the digital asset domain, Mastercard has introduced its innovative Web3 solution, the “Mastercard Crypto Credential.” By providing secure transactions between users and verifying them according to Mastercard’s standards, the new solution is designed to minimize risks and ensure a safer environment for digital asset users.
Announced on April 29, the Mastercard Crypto Credential focuses on issuing users a unique identifier that allows for instant verification. This ensures that the receiving address for funds is compliant with Mastercard’s standards and has been thoroughly vetted. Moreover, the solution supports compliance by exchanging essential metadata needed to meet regulations, thus reducing opportunities for bad actors and lowering the risk of lost funds.
Should bad actors manage to obtain a unique identifier, Mastercard can quickly revoke their verification if they are found engaging in nefarious activities. The company has partnered with various wallet providers, including Bit2Me, Lirium, Mercado Bitcoin, and Uphold, to implement this solution. Additionally, Mastercard has joined forces with blockchain platforms Aptos, Avalanche, Polygon, and Solana.
To further enhance address verification and support Travel Rule compliance for cross-border transactions, Mastercard will utilize CipherTrace’s suite of services, including CipherTrace Traveler. This collaboration strengthens Mastercard’s commitment to securing the digital asset space and ensuring user safety.
Over the past few years, Mastercard has steadily increased its involvement in the crypto sector. This recent announcement comes shortly after the launch of its nonfungible token (NFT) gated musician accelerator program, created in partnership with Polygon. The program grants holders of Mastercard’s Music Pass NFT free access to exclusive materials, artificial intelligence (AI) tools, and other experiences until the end of April.
Mastercard’s competitor, Visa, has also been making moves in the crypto industry. On April 24, Visa’s Head of Crypto, Cuy Sheffield, announced a new stablecoin payments-focused project on Twitter. While details remain limited, a job listing for the project indicates that Visa is “building the next generation of products to facilitate commerce in everyone’s digital and mobile lives.” The company seeks someone with extensive experience in Web3 and blockchain technology.