Mastercard Debuts Service Offering Crypto-Trading Tied to Bank Accounts
Mastercard Inc. debuted a service that will let consumers buy and sell digital assets through their bank accounts, potentially paving the way for thousands of finance firms to offer crypto trading for the first time.
The product, called Crypto Source, will start in the US, Israel and Brazil early next year through a pilot program, Ajay Bhalla, Mastercard’s president of cyber and intelligence, said in an interview. He declined to say which banks would be the first to participate.
While banks have been warming up to crypto over the past few years, the vast majority have shied away from holding virtual currencies and offering them to their retail clients because of regulatory concerns. But with thousands of bank partners, Mastercard’s service could help cryptocurrencies gain more mainstream adoption.
Being able to buy crypto “from your own bank where you have your bank account is a very big need from the market and something consumers want,” Bhalla said.
Crypto Source will be offered through a partnership with digital-asset company Paxos Trust Co., which will provide virtual currency trading and custody services on behalf of the banks. That means lenders won’t be holding the assets on their balance sheets.
