Mastercard has formed a strategic partnership with European crypto payments provider Mercuryo to enhance support for non-custodial wallets. This collaboration introduces a euro-denominated debit card that allows users to spend cryptocurrencies like bitcoin stored in self-custody wallets at over 100 million merchants within the Mastercard network, Mercuryo announced in a press release.
Non-Custody Wallets Offer Users Full Control
In contrast to custodial wallets where a third party controls the private keys, non-custodial wallets empower users with complete control and responsibility for securing their funds. With the private key held by the user, they have full access to their digital assets, making this storage method particularly popular among crypto enthusiasts seeking to avoid centralized risks.
Mastercard's decision to support self-custody wallets aligns with the increasing trend towards decentralization in finance, reflecting a shift in the industry's landscape.
Christian Rau, Mastercard's Senior Vice President for crypto and Fintech Enablement, emphasized the company's commitment to enhancing the self-custody wallet experience through collaboration with innovative partners like Mercuryo. This partnership aims to bridge the gap between blockchain technology and traditional payment systems, offering consumers a seamless and secure way to utilize digital assets worldwide.
Established in 1966, Mastercard operates as a global payments corporation, providing financial services across more than 210 countries. The company ventured into the cryptocurrency space in February 2021 by enabling support for cryptocurrencies and stablecoins on its network.
Following this initial foray, Mastercard has engaged in strategic partnerships with notable industry players including Circle, a USD coin provider, and U.S.-based crypto exchange Coinbase. The recent collaboration with Mercuryo builds on the success of a pilot program conducted in August, where Mastercard collaborated with MetaMask to introduce crypto debit cards.
The Mastercard-branded Spend card offered through Mercuryo incurs various fees, including an issuance fee of €1.60, a monthly maintenance fee of €1, and a 0.95% off-ramp fee to facilitate seamless transactions for users.
crypto">Mastercard Resume Push into crypto
In a previous initiative in May, Mastercard joined forces with a consortium of major banks to test distributed ledger technology for settling digital asset transfers among the participating institutions. This testing network encompassed assets such as commercial bank money, US treasuries, central bank money, and investment-grade debt, traditionally traded through separate systems.
more recently, Mastercard launched its crypto Credential service, designed to simplify peer-to-peer crypto transfers for average users. This service enables users on select crypto exchanges to send and receive digital assets using a Mastercard crypto Credential Alias, replacing complex blockchain addresses with a more user-friendly interface.
Mastercard's emphasis on enhancing security and ease of use in crypto and blockchain technology underscores the company's commitment to building trust and increasing the utility of these innovative solutions within the financial industry.
