On May 29, Mastercard launched the Mastercard Crypto Credential, which allows users to send and receive cryptocurrencies using simplified aliases instead of complex blockchain addresses, according to a press release.

The Mastercard Crypto Credential verifies interactions between consumers and businesses on blockchain networks, ensuring users meet verification standards and confirming the recipient’s wallet supports the transferred asset.

This system simplifies identifying supported assets or chains by the recipient, thereby enhancing trust and certainty in transactions. Additionally, Mastercard Crypto Credential supports the exchange of Travel Rule information for cross-border transactions, fulfilling regulatory requirements aimed at preventing illicit activities.

The process begins with verifying users against Mastercard’s standards, providing them with an alias for sending and receiving funds across supported exchanges. When initiating a transfer, the system verifies the validity of the recipient’s alias and wallet compatibility.

If the recipient’s wallet does not support the asset or blockchain, the sender receives a notification, and the transaction is halted to prevent potential loss of funds.

Initially focusing on peer-to-peer (P2P) transactions, Mastercard plans potential expansions into non-fungible tokens (NFTs), ticketing, and other payment solutions.

Targeting the Latin American and European markets, Mastercard Crypto Credential is currently available in several countries, including Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay.

The service is accessible through three primary exchanges: Bit2Me, Lirium, and Mercado Bitcoin. Users of Lulibit, associated with Panama and Guatemala, can access the service via Lirium, while Brazil-based crypto wallet provider Foxbit participates in the pilot ecosystem.

Mastercard plans to roll out Crypto Credential initially to select users on a first-come, first-served basis, with plans to expand to more than 7 million users in the coming months.

Beyond Crypto Credential, Mastercard continues to innovate in blockchain technology, including its Multi-Token Network aimed at enhancing security, scalability, and interoperability in crypto transactions. Additionally, its Crypto Source service, in partnership with Paxos, enables banks to offer crypto trading services to their customers.

Mastercard has also developed technology for tokenizing central bank digital currencies (CBDCs) on various blockchains and supports payment cards issued by crypto companies such as Nexo, Bybit, Uphold, Bitpay, and Revolut.