Credit card giant Mastercard announced a partnership with Paxos, the company behind the USDP and BUSD stablecoins, to offer secure crypto trading and services through banks. Paxos, a regulated blockchain infrastructure platform has become a major player, bridging digital assets to the mainstream. Paxos is known for having the highest quality and most transparent backing of the big stablecoin issuers and is fully regulated by the New York State Department of Financial Services. The service, called Crypto Source, will allow banks to offer brokerage, custody, and advisory services to their customers. This partnership could be a boost to crypto adoption, since Mastercard itself is owned by a consortium of 25,000 member banks.
Mainstream finance is starting to sit up and pay attention to the blockchain world, and has the capital, network, and infrastructure to deliver products and services to the masses. Just as BlackRock partnered with Coinbase to provide bitcoin exposure to clients in August, the Mastercard Paxos tie up could do the same for banks. It could be that TradFi - the traditional financial system - plays an equal or larger role in the delivery of digital assets and services as DeFi.