Mastercard Stablecoin Security: how the new risk tool works

Mastercard has launched Stablecoin Security, a risk-intelligence service that helps banks and payment firms check stablecoin transfers for fraud, scams and sanctions exposure — including before any money moves on-chain. It was unveiled on Oct. 19 at Money20/20 USA in Las Vegas, according to Mastercard's press release and The Block.

What it is

Stablecoin Security is a platform-agnostic API (a software interface) that financial institutions plug into their existing fraud, compliance and case-management systems. It extends the risk tools Mastercard already uses for card and bank payments to stablecoins, so a bank does not need a separate risk setup just for crypto rails.

Why Mastercard says it is needed

Mastercard cites a study of 593 million stablecoin transfer events across 141 million Ethereum transactions in 2025: nearly 60% were complex, multi-step transactions rather than simple one-to-one payments. That makes it harder to see where money really came from and where it ends up, especially in supplier payments and cross-border trade.

How it works

• Signals: the service looks at transaction context, the source of funds, exposure to restricted parties and scam indicators.
• Risk score: it generates a score before the payment is completed, and keeps producing intelligence across both the fiat and stablecoin legs.
• Decision: the bank can let the payment through or send it for review.

Mastercard's example: a Boston coffee shop pays a Brazilian bean supplier through its bank, which uses stablecoins to move the money across borders. Before sending, the bank's provider runs the payment through Stablecoin Security; the supplier then converts the stablecoins into local currency.

Who uses it and when

The first partners are Borderless.xyz, which connects institutions to licensed stablecoin providers in more than 113 countries and 72 currencies, and Keyrails, which handles high-value cross-border trade payments, particularly in emerging markets. Both are part of Mastercard's Start Path startup programme. The service starts in North America, with worldwide availability expected in 2027, and Mastercard plans to widen its reach next year, including via BVNK — the stablecoin firm behind its recently launched Global Money Platform.

What it means for users

"Stablecoins are creating new possibilities for value exchange, but financial institutions need the right intelligence and controls to participate with confidence," said Ann Johnson, Mastercard's executive vice president for security solutions. For ordinary users, the effect is indirect: payments may be screened, and sometimes paused, before they settle. Tools like this complement, but do not replace, your own vigilance — our guide on how to spot crypto scams covers the basics.