Mastercard Partners With Mercuryo, Polygon on Self-Custody Push

Key Developments in Crypto Transfers

Mastercard is advancing its Crypto Credential system by integrating support for self-custody wallets. This initiative is a collaborative effort with payments firm Mercuryo and blockchain company Polygon Labs.

The primary goal of this expansion is to simplify cryptocurrency transfers for the average user. It aims to replace the need for lengthy alphanumeric wallet addresses with short, user-friendly aliases.

A New Phase for Mastercard in Blockchain Technology

The Crypto Credential framework was initially developed to enhance user verification and minimize errors in blockchain transactions. Historically, its availability has been primarily through traditional platforms and custodial services.

Extending this framework to self-custody wallets represents a significant shift. It moves towards empowering users with greater control over their digital assets while maintaining essential verification processes.

Polygon Labs is set to be the inaugural native blockchain network to host this system. The technology provided by Polygon will underpin the blockchain infrastructure, while Mercuryo will manage user onboarding and identity verification.

Operational Mechanics of the System

According to the operational framework detailed by the collaborating companies, Mercuryo will conduct Know Your Customer (KYC) checks. Upon successful verification, each user will be assigned a unique alias.

Following verification, users will have the ability to link their self-custody wallets to their assigned alias. This linkage will enable them to receive digital assets using the alias, eliminating the need to share traditional long public addresses.

An additional feature for users is the option to request a Soul Bound Token on the Polygon blockchain. This token is non-transferable and is permanently associated with a single wallet. Its function is to signify that the wallet belongs to a verified user and can facilitate compliance checks, including those mandated by the Travel Rule.

The Travel Rule is a regulatory requirement that mandates the inclusion of essential identification details for both the sender and the recipient in certain cryptocurrency transfers.

Once the alias is established and the wallet is linked, users will be able to receive cryptocurrency solely by using their alias. The functionality to send funds through this system is anticipated to be introduced at a later stage.

Statements from Company Representatives

Raj Dhamodharan, Executive Vice President for Blockchain & Digital Assets at Mastercard, commented on the development, stating, "By streamlining wallet addresses and adding meaningful verification, Mastercard Crypto Credential is building trust in digital token transfers."

Petr Kozyakov, co-founder and CEO of Mercuryo, expressed his company's pride: "We are proud to be Mastercard’s first partner to launch Mastercard Crypto Credential across their non-custodial wallet partner network."

Marc Boiron, CEO of Polygon Labs, highlighted the significance of the partnership: "This partnership marks the moment when self-custody becomes simple."

Integration with Mastercard's Broader Web3 Strategy

The companies indicated that this expansion aligns with Mastercard's comprehensive Web3 initiatives. These initiatives encompass identity solutions, digital payments, Non-Fungible Tokens (NFTs), and ticketing systems.

The overarching objective is to establish industry standards that can be applied across a diverse range of blockchain applications. This is to be achieved while ensuring that necessary verification and compliance measures are maintained.