Mastercard Taps Crypto Credential for Cross-Border Stablecoin Payments
Mastercard and Borderless.xyz have launched a pilot program to test the use of Mastercard's Crypto Credential in cross-border stablecoin payments. The program, which starts immediately with live transactions, aims to address the bottleneck in stablecoin payment networks where compliance checks are repeated for each new counterparty relationship.
The pilot involves three network participants: Infinia, Walapay, and Koywe, who will use Mastercard Crypto Credential to supply standardized assurance signals that other participants can plug into their own approval and risk processes. This 'single-audit compliance model' is meant to simplify the process of verifying counterparties.
According to Kevin Lehtiniitty, CEO and co-founder of Borderless.xyz, correspondent banking has long solved this issue by trusting originating compliance downstream, rather than re-executing checks at every counterparty. Mastercard is applying this model to digital asset payments, he said.