Mastercard has introduced a new tool designed to help banks and payment providers screen for risks associated with stablecoin transactions. The service, called Stablecoin Security, combines payment data with blockchain analytics to identify potential fraud, scams, and other financial crime risks before funds move onchain. Unveiled at the Money20/20 USA conference, the tool allows financial institutions to flag suspicious activity and generate a risk score for transactions, enabling them to decide if further review is needed. Initial partners for the tool include Borderless. Xyz and Keyrails, with global commercial availability expected next year. The move comes as the stablecoin market faces challenges, with growth in digital dollar supply slowing despite increased transaction volumes. A recent report suggests the market could reach $2 trillion by 2030, two years later than initially forecast.
The new service aims to address the complexities introduced by stablecoins, which can move across multiple wallets and blockchains, making risk assessment more challenging. By providing a risk score before transactions are completed, Mastercard hopes to help financial institutions better manage the risks associated with these transactions. The tool is part of Mastercard's ongoing efforts to expand its stablecoin business, including the recent announcement of a Global Money Platform aimed at bringing stablecoin payments to businesses.
The tool is intended to help financial institutions navigate the evolving landscape of stablecoin transactions and mitigate potential risks associated with these digital assets.