Mastercard is expanding its Crypto Credential program to bring verified aliases to self-custody wallets, using Polygon as the core network and Mercuryo as the first issuer. The rollout, which began in pilot markets like the United Arab Emirates and Kazakhstan, is meant to simplify everyday crypto transfers. Mastercard frames the update as a usability upgrade that keeps compliance intact and positions verified identities as a bridge to smoother peer to peer transactions.
How Mastercard Plans to Simplify Self Custody Transfers
At the center of the proposal is the replacement of long alphanumeric wallet addresses with simple, verified usernames. This shift aims to reduce transfer mistakes and make on-chain activity feel more familiar to mainstream users. Mercuryo will handle registrations and KYC checks in order to link real identities to those aliases, while Polygon provides the throughput and low cost needed to scale the system globally.
Users will also have the option to request a Soul Bound Token on Polygon, a non transferable credential that proves a wallet belongs to a verified individual. The SBT can support compliance requirements such as the Travel Rule, and acts as an on-chain proof of identity without being movable or resellable. Polygon Labs CEO Marc Boiron called the partnership a turning point for making self custody simpler, and early collaborations include platforms such as CoinMENA, ATAIX Eurasia, Intebix and Fuze.
For operators, treasuries and exchanges, the biggest practical benefit is a reduction in operational risk. Fewer address errors mean fewer irreversible losses and smoother flows between participating platforms. This could boost on chain volume for services that adopt the credential, especially in high frequency retail transfers where accuracy matters most.
The tradeoff comes from tying verified identities to blockchain activity, which increases both regulatory exposure and privacy concerns. Linking real world data to wallet behavior raises questions about surveillance, data governance and future enforcement scenarios, even though it also enables safer transfers. Mastercard frames the initiative as part of a broader Web3 strategy centered on identity infrastructure, digital payment rails and new use cases, with availability expected to expand to more exchanges in the coming months.