Mastercard Launches Web3 User Verification Solution to Curb Bad Actors

Mastercard, one of the world’s largest financial services companies, has introduced a new Web3 solution aimed at improving user verification standards and lowering the risks associated with digital assets. The solution, known as the “Mastercard Crypto Credential,” will provide users with a unique identifier that instantly verifies whether an address to which they wish to send funds has been vetted by Mastercard and is operating in accordance with the company’s standards.

The new solution is expected to support compliance by exchanging essential metadata required to meet regulations, lowering the risk of bad actors engaging in nefarious activity and funds being lost. Furthermore, even if bad actors manage to get a unique identifier, Mastercard can quickly revoke their verification if they engage in illegal activities.

Mastercard has collaborated with Bit2Me, Lirium, Mercado Bitcoin, and Uphold, as well as blockchain providers Aptos Labs, Ava Labs, Polygon Labs, and The Solana Foundation. Mastercard will also use CipherTrace’s suite of services to verify addresses and support Travel Rule compliance for cross-border transactions.

This new solution follows Mastercard’s recent collaboration with Polygon on a non-fungible token (NFT) gated musician accelerator program that provides holders of Mastercard’s Music Pass NFT with free access to materials, unique artificial intelligence (AI) tools, and other experiences.

In comparison, according to a recent tweet by Cuy Sheffield, the company’s head of crypto, Visa, Mastercard’s competitor, has also made a move in the crypto space by launching a stablecoin payments-focused project. According to the project’s job posting, the company is “building the next generation of products to facilitate commerce in everyone’s digital and mobile lives” and is looking for someone with experience in Web3 and blockchain technology.

The new Web3 solution from Mastercard is expected to revolutionize the digital asset space by lowering the risk of fraudulent activities and improving user verification standards. As the crypto sector expands, more companies are expected to follow suit by investigating ways to provide users with safe and secure financial services.