Crypto Credential Service for Cross-Border Transfers Will Soon Be Made Available By Mastercard

This is the first cross-border use case for the Mastercard Crypto Credential service, which allows wallets to be identified in transactions that are compliant with the Financial Action Task Force's (FATF) "travel rule."

Crypto Credential Service for Cross-Border Transfers Will Soon Be Made Available By Mastercard

Raj Dhamodharan, EVP Blockchain & Digital Asset Products & Digital Partnerships, at Mastercard said that the company will be launching a service to verify and ensure compliance of transactions between wallets, starting with transfers between countries. Dhamodharan announced his first cross-border application on Friday, from the stage at Consensus2023. The Mastercard Crypto Credential allows wallets in transactions to be identified, and is compliant with the Financial Action Task Force (FATF)'s "travel rule."

Mastercard Crypto Credential, a technology developed by CipherTrace, will be used to certify interactions in late 2021. Dhamodharan explained that "if two people wish to transfer money from one country into another, then the level of verification and compliance required is high." He continued, "So how can you identify these wallets?" How do you get enough information on the other person?

CipherTrace, a blockchain tracker, focuses on cross-border transactions to help companies comply with travel rules. According to the rule, whenever crypto valued at more than $1,000 is traded between two parties the crypto service providers of both parties are expected to share the personal information of each party.

Dhamodharan stated that Mastercard had worked with wallet providers Bit2Me Lirium Mercado Bitcoin Uphold. The firms are currently working on a project to start transfers between U.S. and Latin America, and the Caribbean corridors.

Dhamodharan said that the service will be expanded to include more uses cases, including non-fungible Token (NFT), transactions. Mastercard has also teamed up with the public blockchain networks Aptos Labs Ava Labs Polygon, and Solana Foundation.