Mastercard has launched a stablecoin trading security service that allows financial institutions to screen for fraud, scams, and sanctions risks before funds are transferred across blockchain networks.

• Mastercard releases Stablecoin Security to help financial institutions identify fraud, scams, and sanctions risks in stablecoin payments.
• This service combines payment intelligence with blockchain analysis to generate a transaction risk score before fund transfers.
• Borderless.xyz and Keyrails are among the first batch of partners. This service will be launched in North America first, followed by a global rollout in 2027.
• MasterCard plans to expand this service through BVNK, a stablecoin infrastructure provider it acquired in August 2026.

According to the announcement on October 19th, Mastercard released Stablecoin Security on Money20 /20 USA, and announced Borderless.xyz and Keyrails as the first batch of partners. The service will be launched in North America first, with global commercial availability expected to be in 2027.

This service combines traditional payment data with blockchain analytics to help banks and payment service providers assess risks at different stages of stablecoin transactions.

MasterCard stated that the system can generate a risk score before the payment is completed, allowing financial institutions to decide whether to process the transaction or send it for further review.

The company plans to expand this service through BVNK, a stablecoin infrastructure provider acquired in August, and add security tools on top of the existing digital asset payment services.

Stablecoin Security Conducts payment screening before settlement

Stablecoin Security operates through an application programming interface ( API ) that is independent of the platform, allowing financial institutions to integrate it into their existing systems.

This API will check payment details, sources of funds, whether there may be contact with restricted parties, as well as signs related to fraud or other financial crimes.

Banks can utilize this information within their existing fraud monitoring, compliance, and case management systems, without the need to establish separate processes for stablecoin transactions.

MasterCard stated that this service covers both traditional currency payments and blockchain transfers, enabling institutions to assess risks before funds enter the blockchain network as well as during their subsequent circulation.

Ann Johnson, Executive Vice President of MasterCard's Security Solutions, stated that as stablecoins become part of the international payment system, financial institutions need more information to assess transactions.

She said, "Stablecoins are creating new possibilities for value exchange, but financial institutions need appropriate intelligence and control measures to participate with confidence."

According to the company, this service is suitable for payment arrangements involving multiple financial institutions, currency exchange, and blockchain transfers.

For example, a bank that handles payments from international suppliers can use this API to evaluate transactions before sending stablecoins to another country.

If potential fraud or sanctions risks are identified during screening, banks may review the transaction before allowing the payment to proceed.

The company has not yet disclosed the pricing structure or the blockchain networks it supports, nor has it provided a specific global launch date other than the goal for 2027.

Complex stablecoin transactions pose challenges to monitoring.

Mastercard cited a study that examined 593 million stablecoin transfer events in 2025, involving 141 million Ethereum transactions, to illustrate the monitoring challenges faced by financial institutions.

Research has found that nearly 60% of stablecoin transfers involve complex multi-step transactions, rather than simple transfers between two parties.

Such payment arrangements may involve multiple intermediary wallets or multiple transactions, making it difficult to track the flow of funds throughout the entire payment process.

MasterCard stated that combining traditional payment system information with blockchain activities helps financial institutions assess the risks involved in multi-party transactions.

The service is intended to review both the context in which the payment takes place and the blockchain addresses or entities involved in the process of transferring funds.

MasterCard's existing security products have already provided some of the infrastructure for this new service.

Crypto Secure supports risk assessment for cryptocurrency transactions, while Mastercard Crypto Credential provides identity and compliance information for digital asset transfers.

In August this year, crypto.news reported on Mastercard Crypto Credential because the company had launched a pilot project with Borderless.xyz, Infinia, Walapay, and Koywe at that time.

This pilot tested a scaled model: verified identity and regulatory information can be recognized by multiple participants in cross-border stablecoin payment flows.

Crypto Credential focuses on identity verification, while the newly announced Stablecoin Security service utilizes payments and blockchain intelligence to assess transaction risks.

Borderless.xyz and Keyrails have been added to the first batch of deployments.

Borderless.xyz and Keyrails will become among the first partners to collaborate with Mastercard in introducing this security service into stablecoin payment operations.

Both companies have participated in MasterCard's Start Path Blockchain and Digital Assets projects, which support startups developing blockchain and cryptocurrency infrastructure.

Borderless.xyz provides financial institutions with access to licensed stablecoin payment service providers, covering over 113 countries and 72 currencies.

Its infrastructure is responsible for managing payment operations and selecting service providers for transactions in different markets.

Mastercard stated that this collaboration will enable financial institutions using such payment services to assess risks across service providers, currencies, and jurisdictions.

Borderless.xyz, the Chief Product Officer, Alex Garn, stated that this collaboration will help institutions manage payment risks while avoiding the addition of unnecessary operational complexity.

Keyrails focuses on high-value international trade payments, especially in emerging markets where enterprises use stablecoins for settlement.

The company stated that this collaboration will enhance the risk monitoring of cross-border trade transactions.

Keyrails, Co-Founder and Chief Compliance Officer, stated that this collaboration will help institutions gain more information regarding the settlement risks of international stablecoins. Rajpal Khangura

MasterCard has not disclosed how many financial institutions will initially use the service, nor has it provided a clear commercial launch date for any of its partners.

BVNK Supports Mastercard's expansion of stablecoins

In integration with the BVNK plan, Mastercard continues its series of investments and product releases centered around stablecoin payments.

MasterCard completed the acquisition of BVNK on August 3, with the transaction valued at up to $1.8 billion.

BVNK provides the infrastructure that connects traditional currencies with blockchain networks, serving businesses in payment, settlement, cash withdrawals, and fund management.

This acquisition provides MasterCard with additional technology to handle stablecoin transfers, as well as exchanges between digital assets and traditional currencies.

On October 16th, Mastercard and BVNK launched Global Money Platform, allowing banks, fintech companies, and enterprises to manage fiat accounts, stablecoin payments, and currency exchanges through a single API.

Companies such as Nuvei, Marqeta, Ontop, Beem, and Almond FinTech are preparing to connect to this platform.

This service is connected to Mastercard Move. By 2027, it is expected that its local bank withdrawals will cover over 40 currencies in more than 200 countries and regions.

MasterCard stated that BVNK will support the expansion of Stablecoin Security in 2027, but did not specify which services or markets will be integrated first.

BVNK, the person in charge of global cooperation, Kimberly Mescal Julien, stated that the company is researching how new security capabilities can enhance the infrastructure that supports stablecoin transactions.

MasterCard links blockchain security with AI payment protection

MasterCard's announcement on October 19 followed its launch of new security capabilities for the Agent Pay platform, which now supports transactions initiated by artificial intelligence agents.

In another interview released on the same day, Johnson stated that Mastercard is leveraging its experience in traditional payment fraud to develop security tools for stablecoins and automated commerce.

She said that the company's network processes about 175 billion transactions per year, and these data provide information about fraud patterns in different regions, merchants, and financial institutions.

MasterCard combines the intelligence from the cybersecurity company Recorded Future it acquired with payment transaction data to identify potential threats.

Johnson indicates that financial institutions are seeking security services that can support new types of payment methods while maintaining the protective capabilities of traditional payment systems.

She believes that cross-border payments represent the most clear use case for stablecoins at present, as they offer faster international transfers and higher transparency.

In contrast, payments initiated by AI are expected to rely heavily on bank card transactions, as consumers will still require fraud monitoring, payment protection, and support when software agents make purchases on their behalf.

In June, MasterCard launched Agent Pay for Machines, and received support from over 30 companies, including Ripple, Coinbase, and Solana Foundation.

The platform is designed to support automated payments between software proxies, including transactions with smaller amounts but a larger volume.

Johnson indicates that MasterCard's core security strategy is to identify fraudulent activities before a transaction is completed, by leveraging intelligence from its payment network and cybersecurity operations.

The company stated that Stablecoin Security will be launched first in North America, while global commercial promotion is still scheduled for 2027.