Mastercard takes a daring step in Defi with Chainlink

As the lines between traditional finance and blockchain are becoming more and more vague, Mastercard and Chainlink reach a decisive step. In a partnership announced this Tuesday, they unveil a chain Fiat-to-Crypto conversion solution designed for Mastercard card holders. This initiative, far from being anecdotal, redefines access to cryptos and lays the basics of a new era of hybrid payments between traditional finance and the web3.

A multi-actor infrastructure for integrated cryptography conversions

While Mastercard had already announced key partnerships to revolutionize cryptographic payments, the new association between society and chainlink is based on a clear ambition: to remove the structural barriers which prevent the average user from entering the chain economy.

In a press release published last Tuesday, the two companies indicate that MasterCard card holders will now be able to “Buy cryptographic assets directly on the channel thanks to a secure Fiat-TO-Crypto conversion”.

Unlike the previous models implemented in recent years, often centered on maps allowing cryptographic expenses via out -of -chain conversions, this new collaboration is based on direct integration into the chain universe. The objective is to provide a seamless and friction purchasing experience that complies with regulatory requirements.

To obtain this result, Mastercard and Chainlink are based on a technological ecosystem spread over several key partners, each providing an essential function to the whole configuration:

• Chainlink: a decentralized oracle infrastructure that connects the systems out of chain and on a chain;
• Zerohash: Responsible for compliance, custody and Fiat-Crypto conversion functions in accordance with regulatory executives;
• Swap finance: user interface supplier, integrating XSWAP, a Dex from the ChainLink ecosystem;
• SHIFT4 payments: manages the treatment of card payments;
• UNISWAP: Protocol used to provide liquidity on chain for conversions.

In their communication, the two companies emphasize that this system is based on an integrated architecture aimed at offering a “Unified, compliant and intuitive user experience”.

For Chainlink, this is a concrete response to years of ineffectiveness in access to cryptos: “We delete long -standing obstacles that have prevented users from accessing the chain economy”. It is a way to open access to cryptos to a much wider audience, beyond initiates and experienced DEFI users.

Towards the interest of DEFI access for the 3 billion MasterCard users

Although the technical structure of the project is complex, its ambitions are clear. Mastercard highlights his desire to connect users to the world of cryptography.

“People easily want to connect to the digital asset ecosystem, and vice versa”Affirms that Raj Dhamodharan, Executive Vice-President of Blockchain and Mastercard’s digital assets.

He describes this new solution as “A sure and innovative way to revolutionize trade on the channel and to promote a broader adoption of cryptography”. To respond to this ambition, the solution is based on a profound integration of all the stakeholders mentioned, promising a gentle Fiat-to-Crypto conversion, all without leaving the chain environment.

Thus, Mastercard hopes to reach its more than 3 billion card holders in the world, transforming the bank card into a gateway to Defi.

This strategy marks a break from previous approaches to the company, often limited to co-marked cards allowing the expenses of crypto already held. Here, the objective is to make the purchase itself from blockchain, based on decentralized protocols like Uniswap, rather than simulating the use of cryptography in a traditional system.

The partnership with Chainlink thus goes beyond a simple marketing initiative. It lays the foundations for a new standard of access to cryptography which is more direct, more secure and potentially more universal.

This announcement raises many questions. Could such a solution disturb the centralized crypto exchange platforms? How will regulators react to such a direct gateway between trustee funds and cryptos? And above all, will this integration succeed in convincing an audience that still hesitates largely to diving into the Defi world? Many problems to follow closely in the coming months, because Mastercard seems determined to make the chain a natural component of the banking experience, as evidenced by the launch with Kraken of a cryptographic card in Europe and in the United Kingdom.

Luc Jose A.

Diploma of Sciences Po Toulouse and holder of a Blockchain certification consultant issued by Ayra, I joined the Cointribuna adventure in 2019. Convinced of the blockchain potential This ecosystem in Constantie Evolution. My goal is to allow everyone to understand the blockchain and to seize the opportunities it offers. I strive every day to provide an objective analysis of adreity, to decorate market trends, to relay the latest technological innovations and to put into perspective the economic and societal En Marche Enjenes.

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