Mastercard has expanded its Crypto Credential framework to self-custody wallets, introducing verified, human-readable aliases that replace long alphanumeric wallet addresses. The move, announced in partnership with Polygon Labs and crypto payments firm Mercuryo, aims to bring trusted identity verification into non-custodial environments without compromising user control.
The rollout selects Polygon as the first blockchain to support the system, citing its fast settlement times, predictable fees, and payment-ready architecture. Mercuryo will serve as the initial issuer, verifying users and enabling the creation of Mastercard Crypto Credential aliases.
A Push to Make Self-Custody Mainstream
The update marks a significant shift in how users interact with self-custody wallets. Sending digital assets typically requires checking long hexadecimal strings, a process vulnerable to mistakes and phishing. Mastercard’s aliases—similar to usernames—aim to reduce errors and establish a consistent verification method across wallets and apps.
The system also allows users to request a Mastercard Crypto Credential soulbound token on Polygon. This non-transferable token signals onchain that the corresponding wallet belongs to a verified individual and can support credential-based transactions.
“This partnership marks the moment when self-custody becomes simple,” said Marc Boiron, CEO of Polygon Labs. He added that mainstream adoption requires blockchain infrastructure to “become invisible” through reliability and familiar user flows.
Why It Matters: A Growing Shift Toward User-Controlled Wallets
Self-custody has surged in relevance since the failures of major centralized exchanges in 2022 and 2023. Industry data shows millions of users increasingly adopting non-custodial wallets like MetaMask, Phantom, and OKX Wallet. Global onchain transaction counts hit record levels in 2024, driven by stablecoin payments, gaming activity, and retail transfers.
At the same time, the industry has struggled with usability barriers. Human error—including copying incorrect addresses—remains one of the most common causes of user losses.
By introducing verified aliases and unified standards, Mastercard attempts to address these long-standing UX challenges while keeping control in the hands of users.
The Importance of Onchain Identity
Onchain identity is becoming central to the next phase of Web3. From regulatory compliance to community governance, verifiable credentials help distinguish real users from bots and unlock more secure financial interactions.
Mastercard’s Crypto Credential operates as an identity-aware layer that does not expose sensitive information. Instead of sharing documents or personal data, users receive a verified alias and, optionally, an onchain credential that signals authenticity. This model aligns with emerging trends in decentralized identity (DID) and soulbound tokens designed to establish trust without compromising privacy.
“By streamlining wallet addresses and adding meaningful verification, Mastercard Crypto Credential builds trust in digital token transfers,” said Raj Dhamodharan, EVP of Blockchain & Digital Assets at Mastercard.
Polygon Becomes the First Blockchain for the Rollout
Mastercard chose Polygon to power the first phase of the expansion due to its performance metrics and payment-grade design.
Polygon’s Proof-of-Stake chain processes millions of transactions daily, with sub-cent fees and rapid finality. Recent network upgrades—including the Rio and Heimdall v2 releases—have further strengthened throughput, reduced reorg risk, and prepared the chain for higher payment volumes.
Polygon also handles a significant share of stablecoin activity in the United States and continues to attract fintech integrations from neobanks, exchanges, and payment providers.
Mercuryo Leads Credential Issuance and User Verification
Mercuryo’s role is to verify users, issue aliases, and provide the compliance layer necessary for credential-based transactions. The company has expanded rapidly in recent years, supporting crypto-to-fiat conversions, wallet integrations, and cross-border payments for millions of users.
“We are proud to be Mastercard’s first partner to launch Crypto Credential across their non-custodial wallet network,” said Petr Kozyakov, Mercuryo’s co-founder and CEO. He said the collaboration represents a “meaningful step toward mass adoption,” especially as users demand wallet sovereignty alongside trusted safeguards.
Tokenized assets, stablecoin payments, and smart-contract-driven financial products are pushing incumbents to integrate blockchain with existing systems.
Combining trusted verification with scalable networks like Polygon may help accelerate crypto’s transition into everyday financial flows. As regulators call for safer digital asset infrastructure, identity frameworks such as Mastercard Crypto Credential could form the backbone of future compliance-friendly Web3 payments.
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