In a recent Blockchain news update, Mastercard that it expanded its Crypto Credential identity service to self-custody wallets, selecting Polygon crypto as the first blockchain to support the rollout.
The card network partnered with Mercuryo to introduce verified, username-based transfers. Users replace long wallet addresses with simple aliases while maintaining full control of their funds.
Mastercard Builds Username System on Polygon
Mastercard Crypto Credential functions as an identity layer for blockchain payments. The system replaces complex addresses with verified usernames that map to self-custody wallets.
Mercuryo handles KYC onboarding and credential issuance. Verified users receive human-readable identifiers tied to their real identities.
Users link self-custody wallets to username-style aliases and receive assets using only that alias. The system includes an optional soulbound credential on the Polygon network.
This on-chain token signals verified status across the Crypto Credential network without requiring users to surrender custody or privacy.
Mastercard described the expansion as bridging the simplicity of traditional payments with the self-custody of crypto.
The company did not disclose the technical criteria used to select Polygon over other blockchain networks.
Why Polygon
A few factors likely influenced Mastercard’s selection. The company has prioritized infrastructure resembling a global payments network rather than a retail trading platform.
Transaction economics likely played a role. Average gas fees on Polygon are fractions of a cent. For a credential system processing potentially millions of username lookups, cost differences compound quickly.
Technical upgrades may have reduced perceived risks. Polygon’s Rio upgrade eliminated blockchain reorganizations in September.
The Heimdall v2 consensus upgrade improved throughput. Both changes addressed concerns about transaction finality that matter to financial institutions.
Current network performance appears sufficient for payment use cases. On-chain data shows Polygon processes 35-70 transactions per second on average, with peaks reaching 90-100 TPS.
Polygon Hosts $3.2 Billion in Stablecoins
Stablecoin activity on Polygon reached a significant scale before the Mastercard announcement.
The network hosts $3.2 billion in stablecoins according to DefiLlama data. On-chain records show 153 million stablecoin transactions in the last month.
Neobanks and fintechs already use the network for payments infrastructure. Stripe, Flutterwave, and Reliance Jio built services on Polygon before the Mastercard deal.
Scaling plans target higher throughput. Polygon’s technical roadmap projects capacity increases to 5,000 TPS in near-term upgrades.
The longer-term Gigagas initiative aims for 100,000 TPS across the ecosystem by 2026. Whether these targets materialize remains uncertain.
The current 50-100 TPS throughput handles existing demand but falls short of Visa’s 24,000 TPS processing capability.
Revolut Enables USDC and USDT Transfers
Revolut announced on November 18 that it had activated USDC and USDT support on Polygon for UK and EEA customers. The European fintech serves 65 million users across 38 countries.
CoinDesk reported that a Revolut spokesperson said that this marked the first time those stablecoins were available on the platform’s Polygon network.
Users can now send and receive USDC and USDT through the integration. The announcement built on an earlier Polygon integration launched in December 2024.
Since that initial rollout, Revolut processed $690 million in Polygon-based transactions. The platform already supported POL token transfers before adding the two major stablecoins.
Transfers settle in seconds with minimal gas fees. Revolut covers gas costs on eligible transfers. Users can stake POL directly in-app at yields up to 4% APY.
The remittance product applies to non-EU countries within the EEA. A Revolut representative confirmed this reflects EU regulatory restrictions on certain stablecoin providers, including Tether’s USDT.
Revolut described this as the first phase of a broader partnership. The company did not explain why it selected Polygon over competing networks.
Mastercard Builds Crypto Strategy Around Infrastructure
Mastercard positioned Crypto Credential as the first network deployment, but left open the option to extend to other chains.
The announcement did not specify a timeline or criteria for adding networks. The card network appears focused on infrastructure plays rather than consumer crypto products.
Mastercard avoided launching its own token or trading service. Instead, the company built tools for identity verification and compliance.
Polygon joined a growing list of institutions building payment services on the network. Stripe, Reliance Jio, Flutterwave, and DeCard announced integrations in recent months.
Multiple blockchain networks now offer transaction speeds and costs that are similar. Polygon faces competition from Base, Solana, and Arbitrum for enterprise integrations.