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Mastercard partners with Paxos on crypto trading for banks

Oct 17, 2022
Illustration of a row of laptops with binary code, money and circles.

Illustration: Shoshana Gordon/Axios

Mastercard has unveiled a new program, Crypto Source, to help banks offer crypto trading to customers.

Why it matters: If successful, the initiative could provide some more competition from banks to crypto exchanges like Coinbase, Binance and FTX.

Details: Mastercard is launching Crypto Source in partnership with Paxos, which will provide trading and custody services on behalf of the banks.

  • Mastercard, meanwhile, will handle regulatory compliance and security and act as a bridge between the banks and the crypto trading firm.
  • The companies plan to debut a pilot program early next year in the U.S., Israel and Brazil.

State of play: Many banks have been reluctant to get into the crypto game, but Mastercard is betting that if it is able to unload some of the regulatory burden they face, it could help increase adoption.

  • However, it is also working with exchanges to make purchasing digital assets easier for consumers.
  • The credit card giant recently struck a deal with Coinbase to allow consumers to buy NFTs with credit cards.
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