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Mastercard has announced the launch of its latest innovation in blockchain technology, the Mastercard Crypto Credential, which aims to improve the trust and security of interactions among consumers and businesses using blockchain networks. With the introduction of a common set of standards and infrastructure, the solution seeks to lay the foundation for financial institutions, governments, brands, and crypto players to ensure that interactions in web3 environments meet defined standards for the activities they would like to pursue.

According to Raj Dhamodharan, Executive Vice President of Blockchain and Digital Currencies at Mastercard, “Setting up and scaling trusted ecosystems to enable commerce is not new to Mastercard. We’ve done this for years in payments – pioneering innovation in identity verification and global standards. We look forward to bringing decades of experience to this space to enhance trust and work with the broader industry and governments to enable further innovation.”

With the Mastercard Crypto Credential, verification levels will be defined, and necessary enabling technology will help bring more use cases to life. The solution is expected to improve the consumer experience and reduce the potential for errors by providing easy-to-remember, straightforward aliases for consumers to share wallet addresses with one another. It will also bring richer information to blockchain transactions through metadata, helping to define criteria for a wallet to help ensure that transactions are completed as intended.

CipherTrace’s suite of services will also be used to help verify addresses and support Travel Rule compliance for cross-border transactions. The first partners to join Mastercard in this journey include Lirium, Bit2Me, Mercado Bitcoin, and Uphold. These partners will initiate projects to enable transfers between U.S. and Latin America and the Caribbean corridors.

Mastercard also partners with public blockchain network organizations Aptos Labs, Ava Labs, Polygon, and The Solana Foundation. This will help bring Mastercard Crypto Credential to the application developers in their ecosystems. Mastercard and these partners will collaborate to enhance verification in NFTs, ticketing, enterprise, and other payment solutions.

Walter Pimenta, Executive Vice President of Product and Engineering for Latin America and the Caribbean, said, “Latin America and the Caribbean is among the top regions for digital assets adoption and remittances leveraging digital assets as means of value exchange. Mastercard Crypto Credential could help to address key challenges that have traditionally hindered mainstream usage of this type of use cases, driving more industry players to join this space in a meaningful way.”

As the types of consumer verification vary widely based on market and compliance requirements, the Mastercard Crypto Credential is expected to unlock several use cases in the blockchain ecosystem, providing a more secure and trustworthy environment for transactions.