Mastercard Enables Non-custodial Crypto Spending
05 Sep, 2024 ● Coin news
Global payment giant Mastercard is expanding its support for non-custodial cryptocurrency wallets through a new collaboration that enables users to spend crypto stored via self-custody.
After launching a crypto debit card pilot with the self-custodial MetaMask wallet in August, Mastercard is now partnering with the European crypto payments infrastructure provider Mercuryo to further bridge traditional finance and the crypto world.
As part of this collaboration, Mastercard has introduced a euro-denominated debit card, allowing users to spend cryptocurrencies like Bitcoin, stored in self-custodial wallets, at over 100 million merchants within the Mastercard network.
Self-custody is a fundamental concept in cryptocurrency, allowing users to store assets without relying on centralized entities like banks or exchanges.
Unlike custodial wallets, self-custodial wallets require users to fully manage and secure their funds by being the sole holder of the private key necessary to access their wallet.
Christian Rau, Mastercard’s senior vice president for crypto and fintech enablement, highlighted that this partnership with Mercuryo strengthens Mastercard’s growing commitment to support self-custodial wallets.
“At Mastercard, we are working closely with partners to innovate and enhance the self-custody wallet experience,” Rau told Cointelegraph, emphasizing the goal of making it easier and safer for consumers to spend their digital assets anywhere Mastercard is accepted.
Founded in 1966, Mastercard is an international payment services corporation based in the United States, offering financial services in over 210 countries and territories.
Given the increasing importance of crypto in payments, Mastercard’s involvement in the crypto market was a natural progression.
The company officially announced its support for cryptocurrencies on its network in February 2021, recognizing the growing role of digital currencies and stablecoins in payments.
Since entering the crypto space over three years ago, Mastercard has partnered with several industry leaders, including USD Coin issuer Circle and the major U.S.-based crypto exchange Coinbase, among others.
Raj Dhamodharan, Mastercard’s blockchain and digital asset lead, noted in an August 2024 post that the company’s initiatives to support spending via self-custody aim to simplify the process of buying and selling crypto, which many crypto holders seek to avoid through centralized exchanges.
“The complexities of this process have been an obstacle for both buyers and sellers as it limits both choice and the purchasing power of stored crypto,” Dhamodharan stated.
The new Mastercard-branded Spend card includes several fees set by Mercuryo, such as a 1.6 euro ($1.8) issuance fee, a 1 euro ($1.1) monthly maintenance fee, and a 0.95% off-ramp fee.
Sources:
https://cointelegraph.com/news/mastercard-non-custodial-crypto-spending-card
