Stablecoin Security checks the origin of funds and looks for possible links to fraud, scams, and sanctions violations. In addition, it analyzes the context of all transactions involving tokens. The system then assigns a risk level. Mastercard provides this information via API, allowing banks to use it alongside their existing fraud prevention and compliance systems.
Mastercard cited a BIS study that analyzed 593 million stablecoin transfers. In 60% of cases, they took place as part of complex, multi-step transactions rather than simple one-to-one payments. Borderless.xyz, which provides stablecoin services in 113 countries and 72 currencies, and Keyrails, a cross-border payments company, became the project’s first partners.