Mastercard is teaming up with Chainlink to let its over three billion cardholders buy cryptocurrency directly. This partnership aims to bridge the gap between traditional finance and the decentralized finance (DeFi) world.
How it Works
The process will use several companies to make it happen:
- Chainlink: Provides the crucial link between traditional payment systems and DeFi platforms.
- Uniswap: A popular decentralized exchange used for crypto trading.
- Zero Hash: Handles the secure conversion of fiat currency (like dollars) into crypto, along with regulatory compliance and asset custody.
- Shift4Payments: Facilitates the processing of card payments.
- Swapper Finance and XSwap: These work together to enable on-chain crypto swaps, using Chainlink’s technology.
Essentially, Mastercard users will be able to convert their fiat money into crypto securely through their cards, then use decentralized exchanges to buy other cryptocurrencies.
What the Companies Say
Sergey Nazarov, co-founder of Chainlink, is excited about this collaboration, highlighting Chainlink’s role in connecting traditional finance with the decentralized world and its massive user base.
Raj Dhamodharan, Mastercard’s executive vice president of Blockchain & Digital Assets, emphasized the growing demand for easy access to the crypto ecosystem, stating that this partnership offers a secure and innovative way to revolutionize crypto commerce.
The Bottom Line
This partnership represents a significant step towards making cryptocurrency more accessible to the mainstream. It simplifies the process of buying crypto for millions of people, potentially boosting the adoption of digital assets.