Traditional financial institutions have been slow to enter the cryptocurrency space. However, in recent months, they have been engaging with the market more often. They appear to be recognizing the potential of blockchain technology and cryptocurrencies. For example, MasterCard is the latest company to lend support to a blockchain-based company.
MasterCard partners with Ethereum-based ConsenSys
Payment giant MasterCard announced earlier today that it is partnering with blockchain software business ConsenSys. The partnership will see the company support multi-blockchain commerce as it sees massive growth in this area.
MasterCard announced earlier today: “Mastercard and ConsenSys have announced a partnership to power the future of commerce. ConsenSys, a software engineering firm in the blockchain space, provides tools and services to support the Ethereum ecosystem and helps developers build next-generation networks to enable companies to launch more powerful financial infrastructures and technology.”
According to the post, the software uses ConsenSys Quorum, an open-source protocol layer that allows enterprises to take advantage of the Ethereum blockchain for their private and public production apps. Quorum comes with customizable features that enable enterprises to operate a secure, scalable permissioned network.
MasterCard will work with ConsenSys on various blockchain initiatives. The payment giant believes the two companies will do great things together. “MasterCard’s blockchain patents and payment network combined with ConsenSys’ deep blockchain development expertise will deliver a robust tech stack based on ConsenSys Quorum, an open-source protocol for enterprises built on Ethereum,” the blog post added.
Raj Dhamodharan, executive vice president of Digital Asset and Blockchain Products & Partnerships at MasterCard, stated that the company’s investment in ConsenSys would allow it to fast-track its blockchain innovation. It will also support numerous customers that are actively developing applications on the Ethereum blockchain.
Joseph Lubin, founder and CEO of ConsenSys and co-founder of Ethereum, added that they are excited to work with MasterCard’s digital assets and blockchain team. The partnership is expected to lead to the convergence of traditional and blockchain-based financial technologies, he added.
MasterCard joins others in the crypto space
MasterCard has joined a list of growing traditional financial institutions in the blockchain and cryptocurrency space. Already, rival company Visa announced its support for the USDC stablecoin late last month.
More traditional financial institutions such as Goldman Sachs, JPMorgan, Morgan Stanley, BNY Mellon, and a wide range of others are all increasing their presence in the cryptocurrency domain.