Mastercard Crypto Credential launches first pilot peer-to-peer transactions and adds new partners to ecosystem

Press release 29 May 2024

What are we saying:

• For the first time, users of the cryptocurrency exchange will be able to send and receive cryptocurrencies using their Mastercard Crypto Credential aliases, instead of the usually long and complex blockchain addresses.
• Live transaction capabilities are enabled on Bit2Me, Lirium, and Mercado Bitcoin exchanges, allowing them to easily and securely enable blockchain transactions between Latin American and European corridors.
• Users in Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland and Uruguay will be able to send cross-border and domestic transfers across multiple currencies and blockchains.
• Building on this momentum, Foxbit is the latest crypto wallet provider to join the pilot Mastercard Crypto Credential ecosystem, extending reach to more consumers. Lulubit users will also receive access through its integration with Lirium.

What does it mean:

• Mastercard Crypto Credential helps verify interactions between consumers and businesses using blockchain networks. It provides assurance that the user has met a set of verification standards and confirms that the recipient’s wallet supports the transferred asset.
• Through the exchange of metadata, Mastercard Crypto Credential eliminates the complexity of a consumer knowing which assets or chains are backed by the person they wish to send funds to, bringing more trust and certainty to these transactions.
• Mastercard Crypto Credential supports the exchange of travel rule information for cross-border transactions. The Travel Rule is a regulatory requirement aimed at ensuring transparency and preventing potentially illegal and illicit activities.
• The P2P transaction is the first of many possible use cases that Mastercard Crypto Credential aims to support. Others may extend to NFTs, ticketing and other payment solutions depending on market and compliance requirements.

How does it work:

• The exchange will first verify a user against Mastercard cryptographic credential standards. At that point, the user gets an alias to send and receive funds on all supported exchanges.
• When a user initiates a transfer, Mastercard Crypto Credential verifies that the recipient’s alias is valid and that the recipient’s wallet supports the digital asset and associated blockchain.
• If the receiving wallet does not support the asset or blockchain, the sender is notified and the transaction does not proceed, protecting all parties from the potential loss of funds.

Because matter:

• This milestone marks the first real-world application of the Mastercard Crypto Credential vision, which was unveiled at Consensus in 2023.
• Mastercard Crypto Credential’s live P2P transactions represent the potential to further expand and support the domestic and cross-border remittance market.

Listen to the experts:

• “Mastercard continues to invest in its technology, standards and partnerships to bring safe, simple and secure payments to the forefront,” said Walter Pimenta, Executive Vice President, Product and Engineering, Latin America and Caribbean at Mastercard. “As interest in blockchain and digital assets continues to increase in Latin America and around the world, it is essential that we continue to provide trustworthy and verifiable interactions across public blockchain networks. We are excited to work with this dynamic set of partners to bring Mastercard Crypto Credential closer to realizing its full potential.”
• “We are proud to continue to deepen our alliance with Mastercard, with whom we share a commitment to innovation and the development of solutions that promote payment alternatives through the use of cryptographic assets,” said Leif Ferreira, CEO and co-founder of Bit2Me.
• “For the Foxbit Group, working with a leader like Mastercard reinforces our commitment to adapt to market needs and offer solutions that not only accompany, but also enrich the experience of our users in the dynamic world of cryptocurrencies,” said Ricardo Dantas, CEO of Foxbit Group. “This is an important step in strengthening our presence in the cryptocurrency market, which includes joining the Mastercard Crypto Credential ecosystem and the launch of the Foxbit card, perfectly aligned with our mission to expand usability and accessibility . of cryptocurrencies, offering our customers more ways to manage and make the most of their digital finances.”
• “We at Lirium are focused on providing regulated crypto services in Latin America and the rest of the world,” said Martin Kopacz, Chief Operating Officer of Lirium. “With Mastercard Crypto Credential, we can ensure the traceability of all blockchain transactions with a higher level of compliance, while providing an exceptional user experience.”
• “Mercado Bitcoin is proud to partner with Mastercard in its innovative Crypto Credential pilot project. As a Latin American leader in innovative blockchain solutions, such as real-world assets and the Brazilian CBDC, we believe in Mastercard’s initiative and its potential to open up the path to a faster future of global financial transactions,” said Roberto Dagnoni, CEO of 2TM, owner of Mercado Bitcoin.

What happens next?

• A select group of crypto wallet users will leverage Mastercard crypto credentials on a first-come, first-served basis. Availability will be expanded to more than 7 million users across participating exchanges in the coming months.
• For more information on Mastercard crypto credentials, please contact cryptopartnerships@mastercard.com.

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