Mastercard (NYSE: MA) is continuing its move into the volatile crypto sector.
The payments giant has submitted a trademark application claiming plans for software for crypto and blockchain/DLT transactions, as well as interconnecting virtual asset service providers for crypto transfers.
It appears as if Mastercard has filed a trademark application for several cryptocurrency and DLT-powered digital tools, a move that confirms its focus on embracing virtual currencies.
#Mastercard is continuing its move into #crypto!
The payment processor has filed a trademark application claiming plans for
▶️ Software for crypto + blockchain transactions
▶️ Interconnecting virtual asset service providers for crypto transactions#Web3 #DeFi #Cryptocurrency pic.twitter.com/Pz1m5gau10— Mike Kondoudis (@KondoudisLaw) June 19, 2023
The application, shared via social media by patent attorney Mike Kondoudis, indicates that Mastercard intends to create software applications for digital currency and blockchain-enabled transfers and plans to interconnect virtual asset service providers (VASPs) for seamless crypto-based transactions.
The trademark application provides an interesting view into the innovative crypto-related business strategy of the payments processing giant.
Its extensive details reveal the development of downloadable application programming interface (API) software intended for verifying/validating interactions via blockchain/DLT-based networks and processing/trading/exchanging virtual currencies.
The API software is also meant to connect different virtual asset service providers (VASPs) in order to support cryptocurrency-based transfers.
As a key part of the financial services product offering, Mastercard intends to create a mechanism for exchanging consumer metadata between financial service providers for compliance-related matters.
Earlier this year, it was reported that payment firms Visa (NYSE: V) and Mastercard were taking a step back from forming new partnerships with cryptocurrency-focused companies. This, after the collapse of major businesses operating in the nascent industry.
As first reported by Reuters, the crypto-assets sector experienced somewhat of a reversal of positive developments last year as bankruptcies of FTX and BlockFi (among many others) shocked investors and increased regulatory oversight of the industry.
Now, Visa and Mastercard have made the decision to suspend the launch of products that may be related to crypto-assets until market conditions begin to substantially improve. This, according to sources cited by Reuters.
A Visa representative noted:
“Recent high-profile failures in the crypto sector are an important reminder that we have a long way to go before crypto becomes a part of mainstream payments and financial services.”
However, this may not materially change the firm’s crypto-related business strategy and focus, the representative clarified.
A Mastercard rep stated:
“Our efforts continue to focus on the underlying blockchain technology and how that can be applied to help address current pain points and build more efficient systems.”