- Mastercard stated in an interview with CoinDesk that multiple financial companies, including Mastercard, have already moved from the experimental stage to real-world cryptocurrency solutions.
- The company is collaborating with Notabene, integrating its Crypto Credential system to make digital asset transactions more secure and user-friendly, allowing users to transfer funds using email addresses instead of complex wallet addresses.
- Mastercard believes that tokenization and stablecoins are key to the future of cryptocurrencies, and is focused on improving on-ramp/off-ramp solutions, while also planning to expand the functionality of Crypto Credential by 2025.
Raj Dhamodharan, Mastercard's head of crypto and blockchain business, stated in an interview with CoinDesk that traditional financial companies that have adopted cryptocurrencies are gradually moving beyond the experimental stage and actively implementing real-world solutions.
"Many in our industry are moving beyond the experimental stage and into actual solution deployment. We're seeing that," he said, noting that Mastercard has already provided stablecoin payment support for financial institutions. These institutions can choose to use stablecoins for settlement, reflecting a broader trend of cryptocurrency adoption.
Last week, the payment giant announced a partnership with crypto compliance company Notabene, integrating Mastercard's Crypto Credential into its SafeTransact platform to enhance the security and user-friendliness of digital asset transactions.
Mastercard's Crypto Credential system remains a key initiative in its efforts to mainstream cryptocurrencies. The system allows users to transfer funds using familiar identifiers like email addresses, without the need to input complex wallet addresses, while ensuring regulatory compliance. Additionally, the system can verify if the recipient's wallet supports a specific asset, preventing transaction misdirection or funds being sent to the wrong account.
"The key to mass adoption of cryptocurrencies is that consumers need to be able to find each other in the ways they're already familiar with," Dhamodharan said.
Dhamodharan stated that Mastercard's goal is to serve as a bridge between traditional finance and blockchain networks, driving the development of new business models while ensuring compliance. The company plans to announce more partnerships and use cases in 2025 to further integrate cryptocurrencies into the global payment system.
"As an industry, we need to be more open and make cryptocurrencies as widely available as possible," he said.
Previously, Mastercard had established partnerships with multiple crypto-native companies, including Binance. However, after Binance faced regulatory challenges in the US, the partnership was terminated in August 2023. A year later, Mastercard has resumed enabling users to purchase cryptocurrencies on the Binance platform.
"Binance is an important partner for us," Dhamodharan said. "We're still collaborating in multiple new areas, such as helping them optimize their on-ramp and off-ramp processes. Those partnerships are still ongoing."
Driving Cryptocurrencies to "New Heights"
Dhamodharan is also optimistic about the future of tokenization. He stated that as the demand for real-world asset (RWA) tokenization grows from companies like BlackRock and Franklin Templeton, the market will require new business models to support this trend.
"If there can be some clarity at the regulatory level on how deposits can be represented in some form on public chains, I think that can further drive tokenization, especially at scale," he said.
In 2025, Mastercard's focus will be on the on-ramp/off-ramp processes between cryptocurrencies and the banking world, aiming to make the process as smooth and secure as possible, while also expanding the functionality and features of its Crypto Credential product. The company's third focus area will be stablecoins.
"We believe the future will be a coexistence of deposits and stablecoins, because deposits are the source of funds, where people and businesses typically hold their money, while stablecoins can easily circulate on-chain and settle quickly."
