- Bitcoin ETFs are now available in the US.
- Payments Network will be providing custodial services for customers.
The crypto economy is growing as each day passes. As per the latest announcement by Mastercard, any of the hundreds of banks and merchants on its network may soon offer crypto-based goods. For example, loyalty schemes may convert airline or hotel points into bitcoin.
Payments Network will be providing custodial services for customers that join up for the network in partnership with Bakkt; a crypto business recently spun out by Intercontinental Exchange.
According to the news, more Americans will be able to earn and spend bitcoin and other cryptos. Similar to Visa, Mastercard has over 20,000 financial institutions worldwide and a global payments network. According to MasterCard, 2.8 billion cards are in circulation.
With Bitcoin’s price rising to over $60,000 this month, interest has remained strong. Bitcoin ETFs are now available in the US, and substantial institutional investors like Pimco have shown interest in trading the cryptocurrency.
Bakkt’s Stock Price Rises
According to Haymond, customers of Mastercard have asked the network for assistance in developing crypto-based services. Instead of funds migrating to crypto exchanges, banks may maintain clients on their platforms.
Sherri Haymond, Mastercard’s executive vice president of digital partnerships said:
“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.”
The announcement boosted Bakkt’s stock, which became public last week. Furthermore, after the Money20/20 conference in Las Vegas, Mastercard and Bakkt announced their alliance.
Bakkt CEO Gavin Michael said the arrangement allows businesses and restaurants to give bitcoin incentives instead of standard points. Moreover, to receive a return on existing points, clients may convert them into crypto at the rates specified by the participating firms.
