✨ Mastercard Launches Blockchain Pseudonym Service with KYC
posted 30 May 2024
Mastercard has rolled out its new Crypto Credentials system for P2P transactions, initially available to a limited audience on exchanges like Bit2Me, Lirium, and Mercado Bitcoin.
Announced in 2023, Crypto Credentials functions similarly to a DNS, but with a twist on user verification. Exchanges verify accounts against KYC and AML standards, and compliant users receive a pseudonym that can be used in place of a full blockchain address.
The system also automatically checks if the recipient’s address supports the desired cryptocurrency, preventing incorrect transfers and reducing user errors.
For international transfers, Mastercard incorporates the necessary data required by the Travel Rule—an AML regulation by the FATF that obliges financial service providers to record detailed information about both the sender and recipient of transactions, including blockchain addresses and personal details.
As interest in blockchain and digital assets continues to surge in Latin America and around the world, it is essential to keep delivering trusted and verifiable interactions across public blockchain networks,said Walter Pimenta, executive vice president, Product and Engineering, Latin America and the Caribbean at Mastercard.
Crypto Credentials is currently available for both domestic and international transfers in Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay. Mastercard plans to bring this service to around 7 million users of its partner exchanges in the coming months.
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