On Wednesday, Mastercard and Borderless.xyz began testing Cryptodent for cross-border stablecoin payments.
The pilot project targets companies operating with dollars on the blockchain who want to know who is on the other side of the transaction.
Infinia, Walapay, and Koywe test Cryptodent
The testing is conducted through the Borderless.xyz payment network. The participating companies are integrating Cryptodent confirmation signals into their transaction approval, verification, and risk management processes.
Infinia, Walapay, and Koywe are the first stablecoin-based entities to use confirmation signals across the network with a single compliance audit model.
Raj Dhamodharan, Mastercard's Executive Vice President for Blockchain and Digital Assets, stated that this collaboration resulted from the Start Path program, designed to support startups.
"Today, we're pleased to take the next step together, exploring how Mastercard Cryptodent can help increase trust in stablecoin payments within the growing participant network," he said. Infinia, Walapay, and Koywe are also graduates of the Start Path program.
Cryptodent standardizes verification and compliance checks for transactions between wallets. It uses shared confirmation signals that allow one party to assess whether the counterparty meets the required standards.
Borderless.xyz operates a stablecoin orchestration and liquidity network, connecting wallet infrastructure to over 15 licensed stablecoin providers in more than 100 countries.
"One of the biggest challenges for stablecoin payment operators isn't the payments themselves. It's that compliance requirements don't scale as fast as the network itself. With each new provider, the verification process starts from scratch," said Kevin Lehtinitty, CEO and Co-founder of Borderless.xyz.
He compared it to traditional banking, where regulatory compliance performed at the point of origin is guaranteed at subsequent stages, suggesting that Mastercard is applying this same approach to digital asset payments.
Pilot follows Mastercard's $1.8 billion acquisition of BVNK
Mastercard acquired BVNK for $1.8 billion, consisting of an initial $1.5 billion plus up to $300 million based on performance. The acquisition deal was approved by regulators five months ahead of Mastercard's self-imposed year-end deadline announced on March 17.
BVNK, based in London, manages approximately $30 billion in stablecoin assets annually across 130 markets. It holds more than 25 regulatory licenses.
In June, Mastercard launched regulated stablecoin settlements, including USDC, PYUSD, and RLUSD. Cryptopolitan reported that the network would process card transactions across eight blockchains using six regulated stablecoins.
In March, Mastercard launched a crypto partner program involving over 85 companies from the crypto industry, payment systems, and financial institutions engaged in cross-border remittances, settlements, and payouts.
