Mastercard launches stablecoin payment risk tool for banks

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Mastercard stablecoin risk tool

Highlights

Mastercard launched Stablecoin Security, an API-based risk intelligence service screening stablecoin payments for fraud, scams, and sanctions breaches before onchain settlement.
The launch follows Mastercard's August acquisition of stablecoin infrastructure provider BVNK for up to $1.8 billion and new cross-border pilot programs with Borderless.xyz, Infinia, Walapay, and Koywe.
A BIS study cited by Mastercard found that nearly 60% of 593 million stablecoin transfer events in 2025 were complex multi-step transactions, highlighting increased compliance challenges for banks.

Risk screening for stablecoin payments

As reported by The Block, Mastercard said Monday that Stablecoin Security gives financial institutions a risk intelligence service that evaluates stablecoin payments before funds are sent onchain. The company unveiled the product at Money20/20 USA and said it delivers a risk score through an API so banks can plug the data into their existing fraud and compliance systems.

The service checks the origin of funds and scans for potential links to fraud, scams, sanctions breaches and other financial crime risks across the stablecoin payment lifecycle. It also reviews transaction context before assigning a score, aiming to help institutions screen more complex payment activity before completion.

In a statement shared with The Block, Ann Johnson, Mastercard executive vice president of Security Solutions, said stablecoins are creating new possibilities for value exchange, but financial institutions need the right intelligence and controls to participate with confidence.

Broader stablecoin strategy and market context

Mastercard said the launch adds to a growing set of stablecoin-related initiatives. In August, Mastercard and Borderless.xyz announced a Crypto Credential pilot with Infinia, Walapay and Koywe to add trust signals to cross-border stablecoin payments, while Borderless.xyz and Keyrails have also taken part in Mastercard's Start Path Blockchain and Digital Assets program.

The company also acquired stablecoin infrastructure provider BVNK in August, after announcing an agreement worth up to $1.8 billion in March. Last week, Mastercard launched its Global Money Platform, combining fiat and stablecoin accounts, real-time conversion, card spending and local bank payouts through a single API, and it expects to bring BVNK into its Stablecoin Security plans next year.

Mastercard cited a BIS study covering 593 million stablecoin transfer events across 141 million Ethereum transactions in 2025. The study found that nearly 60% of stablecoin transfer events occurred within complex, multi-step transactions rather than simple one-to-one payments, underscoring the compliance and monitoring demands facing banks entering the sector.

Our earlier article on SEON’s expansion in the Philippines explained how the fraud prevention firm is targeting traditional banks, remittance providers and payments businesses as digital finance growth and tighter controls increase demand for risk management tools. We noted that SEON is leveraging its partnership with Exist Software Labs to combine its cloud platform with local market data and relationships, positioning the company to address regulatory-driven fraud and scam risks across payment channels.

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