Payment giant Mastercard has announced a new plan for financial institutions, so that they can easily provide users with cryptocurrency transaction hosting services.
According to CNBC, the plan was jointly developed with Paxos, a blockchain enterprise headquartered in New York City.
Paxos will be responsible for promoting the purchase and sale of cryptocurrency, while Mastercard will solve the problems of compliance management and security, which will generally prevent financial institutions from entering data encryption.
MasterCard will undertake regulatory compliance and ensure that financial service providers do not violate complicated rules.
The company's safety work solution allows customers to supervise sales and implement compliance management standards.
According to the new payment index of MasterCard in 2022, nearly one third of the respondents own cryptocurrency.
The partnership between MasterCard and Paxos is not new. This financial information service giant widely uses Paxos's stablecoin distribution platform to change the login password to the legally required login password.
Walter Hessert, head of Paxos strategy, said that the new product enables financial institutions to give cryptocurrencies in a "faster and most valuable" form.
At the beginning of October, MasterCard also launched a new cryptocurrency evaluation tool called Crypto Secure, which uses the technology of CipherTrace, a blockchain security company, which was recycled by the financial giant in 2021.
In October last year, MasterCard established a partnership with Bakkt, a cryptocurrency company, to allow banks to integrate encryption algorithms into the product.
Jon Lambert, the chief digital officer of MasterCard, showed that he hesitated about those encryption algorithms and was more open to the new property provided by traditional financial institutions.