Crypto
Home›Crypto›Stablecoins›Mastercard and Borderless launch pilot for trust check…
Mastercard and Borderless launch pilot for trust checks in cross-border stablecoins
The pilot will test how Mastercard’s Crypto Credential framework can generate assurance and governance signals to reduce compliance friction, without Mastercard processing or settling funds.
Mastercard and stablecoin orchestration network Borderless are running a new pilot to improve trust in cross-border stablecoin transfers, using Mastercard’s Crypto Credential framework. According to Cointelegraph, the effort will explore how standards-based “assurance signals” from the framework can be incorporated into participants’ approval, compliance, and risk processes.
The pilot will also look for new governance signals intended to cut friction in cross-border payments. Borderless CEO Kevin Lehtiniitty said the problem resembles how correspondent banking established trusted originating compliance, without requiring re-execution at each counterparty, and Mastercard will be applying that model to digital asset payments, Cointelegraph reported.
Mastercard’s Crypto Credential will function as a governance and verification layer in the pilot, but Mastercard will not process or settle funds as part of the test. Cointelegraph noted the pilot follows Mastercard’s recent acquisition of stablecoin infrastructure firm BVNK, a deal valued at $1.8 billion.
Earlier in June, Mastercard said it planned to expand settlement capabilities to cover intraday, weekend, and holiday card settlement, including settlement through stablecoins such as Circle’s USDC, Paxos-issued PYUSD, and other listed dollar stablecoins. The new pilot extends the company’s involvement in stablecoin payments infrastructure, Cointelegraph reported.