Proactive Investors - Mastercard Inc (NYSE:MA) is reported to be ending its cryptocurrency partnership with Binance, according to a report on Bloomberg.
The global payment giant and Binance, the largest crypto exchange by traded volumes, will end their four crypto card programs in Argentina, Brazil, Columbia and Bahrain on September 22.
The Binance cards enable users to transact in traditional fiat currencies, using their cryptocurrency reserves on Binance as a funding source.
Mastercard’s other crypto card programs won’t be affected, Bloomberg reported. The payments company also has an association with crypto platform Gemini.
Raj Dhamodharan, Mastercard's head of crypto and blockchain, has endorsed Marstercard’s expansion of partnerships with crypto firms. While he refrained from commenting on Binance directly, he emphasized that any card program undergoes "full due diligence" and is under constant scrutiny.
In October 2022, Mastercard introduced the ‘Crypto Source’ program, aiming to empower financial institutions with secure crypto trading capabilities.
This initiative aligns with the findings of the 2022 Mastercard New Payments Index, which revealed that 29% of global respondents held cryptocurrency as an investment.
Through partnerships with regulated crypto custody providers, Mastercard offers a suite of services, including buying, holding, and selling select crypto assets.
Mastercard has also been actively simplifying the process of purchasing NFTs through collaborations with platforms like Immutable X, Candy Digital, and The Sandbox.
Binance, however, has recently come under the scrutiny of regulators, including the US Securities and Exchange Commission (SEC), which may have contributed to the partnership breaking down.
Earlier this month, the exchange filed for a protective order against the SEC, arguing that its requests for information are "over broad" and "unduly burdensome."