Mastercard announced on Monday (19) the Stablecoin Security, a system that allows financial institutions to assess risks of fraud, scams and possible links to sanctioned individuals or entities in stablecoin payments. Presented during the Money20/20 USA conference, the solution combines information from traditional payments with blockchain analytics to identify suspicious activity before certain transfers are completed.
The service uses data on the origin of funds, the context of transactions and possible indicators of financial crimes. The proposal is to offer banks greater visibility into transactions that may involve different digital wallets, intermediaries and payment systems.
How risk assessment works before transfers
Stablecoin Security will be made available through an API that can be integrated into existing fraud prevention, compliance and incident management systems of financial institutions.
The technology generates a risk score before payment completion, allowing those responsible to assess whether the transaction can proceed or requires further analysis. According to Mastercard, the system tracks different stages of fund movement, including transactions that combine traditional currencies and stablecoins.
Ann Johnson, executive vice president of Security Solutions at Mastercard, said that financial institutions need adequate information and controls to participate in this market with confidence. The executive highlighted that the combination of banking data and blockchain information aims to expand the ability to identify risks in payments with digital assets.
Borderless.xyz and Keyrails are the first partners announced for the implementation of the solution. Borderless.xyz connects financial institutions to licensed stablecoin providers in more than 113 countries, while Keyrails operates in high-value international commercial payments, especially in emerging markets.
The initial launch will be concentrated in North America, with global commercial availability expected for 2027. Mastercard has not yet presented independent results demonstrating the system's effectiveness in reducing fraud.
