Per a report by CNBC, payment giant Mastercard will double down on its crypto future. The company announced a partnership with Bakkt, a financial services company, in an attempt to increase its crypto capacities.
The integration will allow Mastercard’s users, banks, or merchants, to offer cryptocurrency-related products, the CNBC report claims. Such as access to crypto wallets, and the potential launch of loyalty and rewards programs to be paid in Bitcoin, Ethereum, and other digital assets.
Bakkt will take custody of the funds in cryptocurrencies, said two high-ranking sources familiar with the partnership to the mainstream media. In addition, Mastercard’s executive vice president of digital partnerships Sherri Haymond added the following:
We want to offer all of our partners the ability to more easily add crypto services to whatever it is they’re doing. Our partners, be they banks, fintechs or merchants can offer their customers the ability to buy, sell and hold cryptocurrency through an integration with the Baktt platform.
Haymond claims their clients have demanded more crypto capacities from Mastercard. A similar story has been shared by executives in JP Morgan Chase, Goldman Sachs, and other major companies in the traditional finances sector as demand for this new asset class grows.
The executive claims that banks and companies offering financial services have taken note of the interest revolving around cryptocurrencies. These companies want to prevent their clients from migrating to more crypto-friendly platforms.
Mastercard Will Let You Earn Bitcoin And Crypto
Data quoted by CNBC claims that the payment giant has over 2.8 billion Mastercards in circulation and ties with more than 20,000 entities in the traditional finance sector. Thus, their integration with Bakkt could open new crypto use cases for millions of users around the world.
Mastercard and Visa have acknowledged the importance of Bitcoin and cryptocurrencies as part of the future. The companies have been launching several initiatives to increase their crypto offerings.
The CEO of Bakkt Gaving Michael described how millions of merchants could start offering their clients ways to earn crypto with reward programs. The executive said:
We’re lowering the barriers to entry, allowing people to take something like your rewards points and trade them into crypto. It’s an easy way to get going because you’re not using cash, you’re putting something that’s an idle asset sitting on your balance sheet, and we’re allowing you to put in to work.
At the time of writing, Bitcoin trades at $63,462 with 4.2% profit in the daily chart.