Mastercard is launching its new Crypto Credential feature, allowing users to send and receive cryptocurrency by a specific username instead of a wallet address. For the first time, crypto exchange users can send and receive crypto using their Mastercard Crypto Credential aliases. Typically, transactions must utilize typically longer and more complex blockchain addresses.

According to Mastercard, the live transaction capabilities are enabled on the Bit2Me, Lirium, and Mercado Bitcoin exchanges. This allows them to facilitate blockchain transactions simply and securely between Latin American and European corridors. “We are proud to continue deepening our alliance with Mastercard, with whom we share a commitment to innovation and the development of solutions that drive payment alternatives through crypto assets,” said Leif Ferreira, CEO and co-founder of Bit2Me.

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The Mastercard Crypto Credential feature works rather standard. According to Mastercard’s media release detailing the feature, the exchange will first verify a user under the Mastercard Crypto Credential standards. At that point, the user obtains an alias to send and receive funds across all supported exchanges. When a user initiates a transfer, Mastercard Crypto Credential verifies that the recipient’s alias is valid and that the recipient’s wallet supports the digital asset and associated blockchain. Furthermore, if the receiving wallet does not support the asset or blockchain, the sender is notified and the transaction does not proceed. That way, all parties are protected from the potential loss of funds.

Mastercard’s Crypto Credential To Boost Safety And Trust In Transactions

In addition, the Mastercard Crypto Credential feature helps verify interactions among consumers and businesses using blockchain networks. It assures that the user has met verification standards and confirms that the recipient’s wallet supports the transferred asset. This, in turn, improves safety and trust in these transactions. Through the metadata exchange, Crypto Credential eliminates the complexity of a consumer knowing which assets or chains are supported by the person they are looking to send funds to.

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“Mastercard continues to invest in its technology, standards, and partnerships to bring safe, simple, and secure payments to the forefront,” said Walter Pimenta, executive vice president, of Product and Engineering, Latin America and the Caribbean at Mastercard.

“As interest in blockchain and digital assets continues to surge in Latin America and around the world, it is essential to keep delivering trusted and verifiable interactions across public blockchain networks. We’re thrilled to work with this dynamic set of partners to bring Mastercard Crypto Credential closer to realizing its full potential.”

Walter Pimenta, executive vice president, of Product and Engineering, Latin America and the Caribbean at Mastercard.

According to Mastercard, a select group of crypto wallet users will leverage Mastercard Crypto Credential on a first-come, first-serve basis. Wider availability will roll out to more than 7 million users across the participating exchanges over the coming months.

In a significant development within the cryptocurrency market, BlackRock’s spot Bitcoin ETF, IBIT, has outpaced Grayscale's GBTC to become the largest Bitcoin fund. This achievement is pivotal for the industry, reflecting growing institutional interest and investment in Bitcoin ETFs. But how long will it last?

BlackRock's Historic Milestone

On May 28, BlackRock's Bitcoin ETF saw inflows exceeding $100 million, indicating a major shift in the market. As of this writing, Bitcoin is trading at $67,840, a slight decline of 0.92% over the past 24 hours.

Did BlackRock surpass Grayscale?

BlackRock’s spot Bitcoin ETF ($IBIT) has shown remarkable growth, reaching an approximate assets under management (AUM) of $19.79 billion within just four months. In contrast, Grayscale’s GBTC AUM has dropped to about $19.75 billion, following significant net withdrawals.

The surge in BlackRock’s AUM, combined with Grayscale's declining holdings, has propelled BlackRock to the forefront of the Bitcoin ETF market. On May 28 alone, Bitcoin ETFs recorded net inflows of 632 BTC, equivalent to $43.3 million. BlackRock led the way with an addition of 1,505 BTC ($102 million), while Fidelity also saw an increase of 505 BTC ($34 million). Conversely, Grayscale experienced outflows of 1,550 BTC ($105 million).

BlackRock has further bolstered its IBIT holdings by approximately $4.1 million. On Tuesday, the firm disclosed in an SEC filing that it had added $3.6 million and $486,000 worth of IBIT shares to its BlackRock Strategic Income Opportunities (BSIIX) and BlackRock Strategic Global Bond Fund (MAWIX), respectively.

However, at the moment of writing, Grayscale's GBTC remains the largest Bitcoin ETFs, leaving behind BlackRock IBIT again. GBTC AUM reached $20 billion versus $19.79 billion, that of IBIT. Is there something missing here?

Currently, exchange-traded funds (ETFs) globally hold 5% of the total Bitcoin supply, underscoring the increasing institutional adoption of cryptocurrency investments. And within these 5% holdings, the #1 spot will remain with Grayscale, for now!