Mastercard and Borderless.xyz are testing whether assurance signals can reduce compliance friction in cross-border stablecoin payments.
The pilot will explore how Mastercard Crypto Credential can support verification across stablecoin payment flows.
The framework provides assurance signals that payment providers can incorporate into their approval, compliance and risk processes.
Infinia, Walapay and Koywe will take part through the Borderless.xyz network and test what the company describes as a single-audit compliance model.
“One of the biggest friction points for stablecoin payment operators isn’t the payments. It’s that compliance doesn’t scale the same way the network does. Every new provider means starting the verification process over.
Correspondent banking solved this decades ago: originating compliance trusted downstream, no re-execution at every counterparty. Mastercard is applying that model to digital asset payments. Borderless.xyz is the network it runs through.”
said Kevin Lehtiniitty, CEO and Co-Founder, Borderless.xyz
“Innovation is most powerful when it builds over time. Our relationship with Borderless.xyz began through Start Path and has continued to grow as the digital asset ecosystem has matured.
Today, we’re excited to take the next step together, exploring how Mastercard Crypto Credential can help bring greater trust and confidence to stablecoin payment flows across a growing network of participants.”
said Raj Dhamodharan, EVP, Blockchain & Digital Assets at Mastercard.
Featured image: Edited by Fintech News Singapore, based on image by Who is Danny via Magnific
