Mastercard Launches Stablecoin Security Tool to Flag Payment Risks

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Mastercard has rolled out a new tool to help detect crypto compliance risks in stablecoin payments. The Stablecoin Security service scans for fraud, sanctions violations, and other threats before transactions hit the blockchain. It uses an API to integrate with existing systems, analyzing fund sources and transaction data to assign risk scores. The tool is aimed at cross-border payments and is being tested with Borderless.xyz and Keyrails. The service aims to prevent security breach scenarios by flagging suspicious activity early.

Mastercard has launched a service to help financial institutions screen stablecoin payments for fraud, sanctions violations and other financial crime risks before transactions are recorded on the blockchain. Announced at Money20/20 USA, Stablecoin Security uses an application programming interface (API) to deliver risk assessments through existing compliance systems.

The service analyzes fund origins, transaction details and potential links to financial crime before assigning risk scores. Mastercard name Borderless.xyz and Keyrails as its first partners, initially targeting institutions handling cross-border stablecoin payments.

Mastercard Targets Complex Stablecoin Transfers

Mastercard cited a Bank for International Settlements study covering 593 million stablecoin transfer events across 141 million Ethereum transactions in 2025. Nearly 60% occurred within complex, multi-step transactions, complicating efforts to identify suspicious activity.

Related: Mesh and Visa Bring Crypto Spending to 175 Million Merchants Worldwide

“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 of Security Solutions.

Mastercard Expands Stablecoin Services

The launch follows Mastercard’s partnership with BVNK on a Global Money Platform combining traditional and digital currency services through one API. Mastercard has also partnered with SoFi to support SoFiUSD settlement across its card network.

Stablecoin Security will initially launch in North America, with worldwide commercial availability expected in 2027. Mastercard also plans to integrate BVNK into the security service next year.

Related: U.S. AI Data Center Boom Faces Debt Risks as Costs Rise and Projects Stall

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