Crypto Credential Service for Cross-Border Transfers Will Soon Be Made Available By Mastercard Raj Dhamodharan announced its first cross-border use case, the Mastercard Crypto Credential service that allows wallets to be identified in transactions that are compliant with requirements such as the Financial Action Task Force's (FATF) "travel rule."
By Kavya Pillai •
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The EVP Blockchain and Digital Asset Products & Digital Partnerships at Mastercard, Raj Dhamodharan said the payment processing company is bringing out a service designed to ensure transactions between users' wallets are verifiable and compliant, beginning with transfers of digital assets between countries. On Friday from the stage of Consensus 2023, Dhamodharan announced its first cross-border use case, the Mastercard Crypto Credential service that allows wallets to be identified in transactions that are compliant with requirements such as the Financial Action Task Force's (FATF) "travel rule."
In late 2021, the well-known blockchain analytical platform Mastercard agreed to acquire a set of common standards for attestation of interactions, using technology from CipherTrace called Mastercard Crypto Credential."If two people want to transfer value from one country to another country, the level of compliance and verification needed is complex," Dhamodharan said. He added, "So how do you identify those wallets? And how do you exchange enough information about the other party?"
The focus of blockchain tracker CipherTrace is the cross-border transactions that help companies comply with the travel rule. The rule states whenever crypto worth over $1,000 is transacted between two parties, the crypto service provider of the sender is expected to communicate the personally identifiable information of the sender to the crypto service provider of the recipient, and vice versa.
Dhamodharan said Mastercard worked with wallet providers Bit2Me, Lirium, Mercado Bitcoin and Uphold. Currently, the firms are working on an initial project to begin transfers between the U.S. and Latin America and the Caribbean corridors.
What will follow is more use cases for the service, such as non-fungible token (NFT) transactions Dhamodharan shared. Furthermore, Mastercard is teaming up with public blockchain network organizations Aptos Labs, Ava Labs, Polygon and the Solana Foundation.
