A recent survey by Mastercard reveals that 65% of respondents would prefer that their bank or other financial institution provide cryptocurrency-related services. With this new program, banks can offer crypto trading to their customers without developing in-house technology. Instead, they can offer the service through a trusted platform, and bank customers can trade crypto in the confidence that they are working with a secure and trusted provider. Visit https://x-bitcoin-club.com/ to begin your bitcoin journey.
Mastercard’s Crypto Source program
The Crypto Source program from Mastercard aims to provide financial institutions with secure and safe crypto-exchange capabilities. The new program will enable banks to buy, sell and hold select cryptocurrencies through a single platform. The initiative is currently being prepared for pilot programs with financial institutions.
The program is expected to be implemented by banks starting in Q1 2023. It will work alongside bank apps and services like Paxos. Implementation will vary by bank, however. Some may consolidate this functionality into their existing apps, while others will keep it separate from their primary financial holdings. This program is meant to provide a more comprehensive service for banks to retain customers and make them less likely to switch to another financial institution. The banks will earn a commission from Mastercard for providing the service.
Another initiative from Mastercard is its partnership with Paxos, a cryptocurrency exchange. The partnership is expected to expand crypto adoption in the financial industry. Through the partnership, Mastercard will act as a bridge between banks and crypto exchanges. It will also offer security and compliance services.
Mastercard has committed to piloting the product in the first quarter of 2019. After the program is successful, the company will “crank the handle” and expand into other geographies. This could mean more competition for Coinbase and other popular crypto exchanges.
A bank’s cyber security strategy’s key components are identity management, cyber risk support, and advisory services. A comprehensive view of a customer’s identity is essential to deflect fraud attacks. LexisNexis Risk Solutions brings together physical and digital identity, behavioral biometrics, credit-seeking insights, and more to provide a 360-degree view of a customer. With LexisNexis Risk Solutions, banks can provide their customers with complete identity, security, and fraud management solutions.
Implementing risk management solutions is essential to any bank’s cryptocurrency trading strategy. Banks should create and maintain a risk management diagnostic for their activity, identify and prioritize critical sources of expertise and technology, and design an implementation plan. This plan should outline the steps necessary to comply with regulations and meet regulatory standards. In addition, a robust program should be in place to archive key milestones and ensure compliance with regulatory requirements.
Cyber risk has systemic ramifications and can disrupt entire financial systems. A cyber event can impact an institution’s ability to service its creditors and affect the stability of its operations. Although capital and liquidity are essential, they may not be enough to cushion the impact of a cyber event.
Know-your-customer (KYC) checks
A new service from Mastercard will make it easier for banks to offer cryptocurrency trading. It will also enable them to outsource compliance and record-keeping to a third party. Although the cryptocurrency industry is still relatively new, the plethora of regulatory risks is a primary concern for large financial institutions.
The service will be available in pilot programs, with full broader availability. The service is designed to protect consumers and ensure that the bank’s operations are safe and secure. It will use data from on-chain platforms and AI algorithms to verify transactions.
The program is a collaboration between Mastercard and Paxos, which provides blockchain infrastructure services for banks. The two companies will develop a new platform for banks to offer cryptocurrency trading and custody. The partnership will also use technology to integrate these capabilities into banks’ interfaces.
As cryptocurrency trading continues to gain momentum, MasterCard has announced a new program to help banks offer cryptocurrency trading. The Crypto Source program will enable financial institutions to provide customers with access to digital assets through their bank accounts. Through this, banks can offer customers the convenience of buying and selling crypto on a secure platform, and MasterCard will help them manage compliance and record-keeping requirements.