- Mastercard has announced a pilot of its Crypto Credentials transaction identity system
- Users can send and receive crypto using aliases rather than addresses, making the process more user-friendly and less prone to errors
- The functionality has gone live on Bit2Me, Lirium, and Mercado Bitcoin exchanges, enabling secure blockchain transactions between Latin America and Europe
Mastercard yesterday announced the pilot of a crypto transaction identity system which allows users to send digital assets to a personal username rather than a complicated address. Mastercard Crypto Credentials allow users of crypto exchange exchanges to send and receive crypto using aliases rather than addresses, making the process more user-friendly and less prone to theft or mistakes. This new functionality is now live on the Bit2Me, Lirium, and Mercado Bitcoin exchanges, facilitating secure blockchain transactions between Latin American and European regions.
Move Over Addresses
Mastercard announced Crypto Credentials at Consensus in 2023, with this pilot being the first real-world example of the scheme and marking a significant step towards more secure and straightforward blockchain transactions. From today, certain exchange users in multiple countries including Argentina, Brazil, France, Mexico, and Spain will be able to conduct cross-border and domestic transfers across multiple currencies and blockchains using aliases rather than long addresses.
Users sign up to Mastercard Crypto Credential and prove their identity through the payment giant, allowing exchanges to meet increasingly strict KYC/AML criteria while making the process of transferring crypto easier. Moreover, Mastercard Crypto Credential supports the exchange of Travel Rule information for cross-border transactions, ensuring compliance with regulatory requirements aimed at preventing illegal activities.
The platform also confirms that the recipient’s wallet supports the transferred asset before it can be sent, eliminating the possibility of the asset being sent to the wrong address.
More Than Just a Name
To use this new system, the exchange first verifies the user according to Mastercard Crypto Credential standards. Once verified, the user receives an alias that can be used to send and receive funds across all supported exchanges.
When initiating a transfer, Mastercard Crypto Credential checks the recipient’s alias to ensure it is valid and that the recipient’s wallet can support the digital asset and associated blockchain. If the recipient’s wallet does not support the asset or blockchain, the transaction is halted, protecting all parties from potential loss of funds.
This development highlights the potential of Mastercard Crypto Credential to support various use cases beyond P2P transactions, such as NFTs, ticketing, and other payment solutions, depending on market and compliance requirements.
The pilot is the first step towards aliases replacing addresses across the board, something that is needed to make crypto more accessible to the masses.
