Mastercard has introduced a new tool designed to enhance security for stablecoin transactions, aiming to mitigate risks before funds move onchain. The company unveiled Stablecoin Security at the Money20/20 USA conference, combining traditional payment data with blockchain analytics to detect fraud, scams, sanctions exposure, and other financial crimes. Initial partners include Borderless.xyz and Keyrails, with global commercial availability expected next year.
The tool addresses the complexities of stablecoin transactions, which can involve multiple wallets and blockchains, making risk assessment challenging. Mastercard claims Stablecoin Security can generate a risk score before a payment is completed, allowing banks to flag transactions that may require further review.
The launch follows Mastercard’s $1.8 billion acquisition of BVNK in August and its recent announcement of a Global Money Platform for stablecoin payments. The expansion comes amid a slowdown in the growth of digital dollar supply this year, despite accelerating transaction volumes driven by remittances and cross-border payments.
A recent Standard Chartered report suggests the stablecoin market could reach $2 trillion by 2030, two years later than initially forecasted.