Mastercard has expanded its Crypto Credential identity service to self-custody wallets, with Polygon chosen as the initial blockchain to support this rollout. In partnership with Mercuryo, the card network has introduced verified, username-based transfers, allowing users to replace lengthy wallet addresses with simple aliases while retaining full control of their funds.
Mastercard Builds Username System on Polygon
The Mastercard Crypto Credential system functions as an identity layer for blockchain payments. It replaces complex wallet addresses with verified usernames that are mapped to self-custody wallets. Mercuryo manages the Know Your Customer (KYC) onboarding process and the issuance of credentials. Verified users receive human-readable identifiers linked to their real identities.
Users can connect their self-custody wallets to these username-style aliases and receive assets using only the alias. The system incorporates an optional soulbound credential on the Polygon network. This on-chain token signifies verified status across the Crypto Credential network without requiring users to give up custody or privacy.
Mastercard has described this expansion as a bridge between the simplicity of traditional payments and the self-custody offered by cryptocurrencies. The company has not disclosed the specific technical criteria that led to the selection of Polygon over other blockchain networks.
Why Polygon
Several factors likely influenced Mastercard's decision to select Polygon. The company has focused on building infrastructure that resembles a global payments network rather than a retail trading platform. Transaction economics also played a significant role, as average gas fees on Polygon are minimal. For a credential system that could potentially process millions of username lookups, even small cost differences can accumulate quickly.
Technical upgrades may have also reduced perceived risks. Polygon's Rio upgrade, implemented in September, eliminated blockchain reorganizations. The Heimdall v2 consensus upgrade further improved throughput. Both of these changes addressed concerns about transaction finality, which are critical for financial institutions.
The current network performance appears adequate for payment use cases. On-chain data indicates that Polygon processes an average of 35-70 transactions per second, with peaks reaching 90-100 TPS.
Polygon Hosts $3.2 Billion in Stablecoins
Even before the Mastercard announcement, stablecoin activity on Polygon had reached a notable scale. According to DefiLlama data, the network hosts $3.2 billion in stablecoins, with on-chain records showing 153 million stablecoin transactions in the past month.
Neobanks and fintech companies are already utilizing the network for their payment infrastructure. Companies such as Stripe, Flutterwave, and Reliance Jio had established services on Polygon prior to the Mastercard deal.
Scaling plans are in place to achieve higher throughput. Polygon's technical roadmap projects capacity increases to 5,000 TPS through near-term upgrades. The longer-term Gigagas initiative aims to reach 100,000 TPS across the ecosystem by 2026, though the realization of these targets remains uncertain. The current throughput of 50-100 TPS is sufficient for existing demand but falls short of Visa's processing capability of 24,000 TPS.
Revolut Enables USDC and USDT Transfers
Revolut announced on November 18 that it had activated support for USDC and USDT on Polygon for its UK and EEA customers. The European fintech company serves 65 million users across 38 countries. CoinDesk reported that a Revolut spokesperson stated this was the first time these stablecoins were available on the platform's Polygon network.
Users can now send and receive USDC and USDT through this integration. This announcement builds upon an earlier Polygon integration that was launched in December 2024. Since that initial rollout, Revolut has processed $690 million in Polygon-based transactions. The platform already supported POL token transfers before adding these two major stablecoins.
Transfers settle within seconds and incur minimal gas fees. Revolut covers gas costs for eligible transfers. Users can also stake POL directly within the app, earning yields up to 4% APY. The remittance product applies to non-EU countries within the EEA. A Revolut representative confirmed that this is due to EU regulatory restrictions concerning certain stablecoin providers, including Tether's USDT.
Revolut described this as the first phase of a more extensive partnership. The company did not specify the reasons for selecting Polygon over competing networks.
Mastercard Builds Crypto Strategy Around Infrastructure
Mastercard has positioned Crypto Credential as its initial network deployment but has left open the possibility of extending the service to other blockchains. The announcement did not provide a specific timeline or criteria for adding additional networks. The card network appears to be concentrating on infrastructure developments rather than direct consumer crypto products.
Mastercard has avoided launching its own token or trading service. Instead, the company has focused on developing tools for identity verification and compliance. Polygon has joined a growing list of institutions that are building payment services on the network, with Stripe, Reliance Jio, Flutterwave, and DeCard announcing integrations in recent months.
Multiple blockchain networks now offer comparable transaction speeds and costs. Polygon faces competition from networks such as Base, Solana, and Arbitrum for enterprise integrations.