(CNBC) Mastercard Inc. is reportedly working with Bakkt Holdings Inc. to allow banks and merchants in its network to incorporate cryptocurrencies in their services.
The crypto services will include bitcoin wallets, debit and credit cards that support digital assets transactions and loyalty programs. Bakkt Holdings, Inc will offer cryptocurrency custodial services.
Mastercard’s Executive Vice President in charge of digital partnerships, Sherri Haymond, said that the new move is driven by an increase in demand for crypto services among customers.
Mastercard and Bakkt have planned to announce the deal at the annual Money 20/20 conference in Las Vegas.
Bakkt CEO Gavin Michael said that restaurants and merchants will reward their customers using bitcoin points. The points can be converted to crypto and customers can earn a yield.
The development will expand the adoption of cryptocurrency. Mastercard has 2.8 billion Mastercards in circulation and over 20,000 relationships with financial institutions globally.
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