Mastercard has selected Polygon to power a new system that allows cryptocurrency users to send funds to verified usernames instead of the long, complex wallet addresses that have long posed a barrier to mainstream adoption, the companies announced Tuesday.
The initiative extends Mastercard Crypto Credential to self-custody wallets for the first time, introducing a verification layer that mirrors the familiar experience of sending money through apps using usernames rather than account numbers.
Mercuryo, a global crypto payment infrastructure platform, will handle identity verification and issue the aliases that users can link to their wallets.
"By streamlining wallet addresses and adding meaningful verification, Mastercard Crypto Credential is building trust in digital token transfers," said Raj Dhamodharan, Executive Vice President of Blockchain & Digital Assets at Mastercard. "Bringing Mercuryo and Polygon's capabilities together with our infrastructure makes digital assets more accessible and reinforces Mastercard's commitment to delivering secure, intuitive, and scalable blockchain experiences for consumers worldwide."
Tackling Crypto's Usability Challenge
The long, complex nature of cryptocurrency wallet addresses has persistently hindered mainstream adoption. A typical Ethereum address consists of 42 hexadecimal characters that look something like "0xd1BCC402bb88Cc3d174a66017755264DfAF8C2F3" — virtually impossible to memorize and easy to mistype when copying.
This technical complexity creates real risks. Users who enter an incorrect address can lose their funds permanently, with no recourse for recovery. The intimidating strings of characters also discourage newcomers from entering the crypto space, limiting the technology's potential reach.
Several solutions have emerged to address this problem. The Ethereum Name Service (ENS) allows users to register human-readable domains like "alice.eth" that map to their wallet addresses, functioning similarly to how the internet's Domain Name System translates IP addresses into website names. Other services have implemented QR codes or phone number-based systems.
Mastercard's approach differs by adding a verification layer on top of the alias functionality. When a user initiates a transfer using a Crypto Credential alias, the system confirms not only that the recipient's alias is valid but also that their wallet supports the specific digital asset and blockchain being used. If the receiving wallet is incompatible, the sender receives a notification and the transaction halts, preventing potential loss of funds.
How the System Works
The process begins with identity verification through Mercuryo, a fintech platform that has been providing crypto-to-fiat payment infrastructure since 2018. Mercuryo will onboard users according to Mastercard Crypto Credential standards, performing the necessary know-your-customer (KYC) verification before issuing aliases.
Once verified, users receive an alias they can connect to their self-custody wallet. They can also request a soulbound token on Polygon — a non-transferable token that signals on-chain that their wallet belongs to a verified user and supports credential-based transaction processing. This token helps applications route transactions appropriately across the Mastercard Crypto Credential network.
The result allows users to transact using a single, verified alias recognized across all participating services, eliminating the need to share or type long hexadecimal addresses. The experience mirrors sending money through consumer apps like Venmo or PayPal, where users simply enter a recipient's username rather than their bank details.
Mastercard said it selected Polygon first due to the network's speed, reliability, and payments-ready infrastructure. The company emphasized that Polygon can handle the high throughput necessary to support real-world payments at scale.
Polygon's Technical Capabilities
Polygon has positioned itself as a leading Ethereum scaling solution, processing transactions significantly faster and cheaper than the Ethereum mainnet. The network processes transactions with average confirmation times of 2 to 5 seconds and can theoretically handle up to 65,000 transactions per second.
Recent upgrades have further enhanced these capabilities. The Rio upgrade activated in October 2025 increased network throughput to 5,000 transactions per second while ensuring nearly instant transaction finality. The upgrade also eliminated blockchain reorganization risks, enhancing reliability for payment systems.
Polygon's roadmap targets even higher performance through its Gigagas initiative, which aims to eventually reach 100,000 transactions per second. These specifications make the network suitable for the high-volume, low-latency requirements of payment applications that Mastercard envisions for its Crypto Credential system.
The network has already attracted significant institutional adoption. Major companies including Stripe, Starbucks, and various financial institutions have built on Polygon's infrastructure, validating its enterprise-grade capabilities.
Building on Previous Crypto Credential Launches
Tuesday's announcement builds on Mastercard's ongoing development of Crypto Credential, which the company first unveiled at Consensus in 2023. The program has since expanded through partnerships with multiple blockchain networks including Aptos Labs, Ava Labs, and the Solana Foundation.
The system went live with its first peer-to-peer pilot transactions in May 2024, enabling users on exchanges including Bit2Me, Lirium, and Mercado Bitcoin to send and receive crypto using aliases. The pilot initially served users in 13 countries across Latin America and Europe, including Argentina, Brazil, Chile, France, Mexico, Portugal, and Spain.
Mastercard has since expanded the program to additional markets including the UAE and Kazakhstan, reaching more than 7 million potential users across participating exchanges. The extension to self-custody wallets represents a significant broadening of scope, as previous implementations focused on custodial exchange environments.
Beyond peer-to-peer transactions, Mastercard has indicated that Crypto Credential could eventually support additional use cases including NFTs, ticketing, and other payment solutions, depending on market demand and compliance requirements.
The Self-Custody Distinction
The expansion to self-custody wallets marks a meaningful evolution for the program. Self-custody wallets — where users control their own private keys rather than relying on a third-party custodian — represent a fundamental value proposition of cryptocurrency: financial sovereignty without intermediaries.
However, self-custody has traditionally meant sacrificing the convenience features that centralized services provide, including identity verification and user-friendly interfaces. Mastercard's initiative attempts to bridge this gap by offering verification and usability improvements while allowing users to maintain control of their assets.
The approach also addresses regulatory concerns around transparency and compliance. Mastercard Crypto Credential supports the exchange of Travel Rule information for cross-border transactions — a regulatory requirement designed to ensure transparency and prevent illicit activities. This compliance layer may help self-custody solutions gain broader acceptance from regulators and traditional financial institutions.
Final thoughts
The partnership reflects broader industry efforts to make cryptocurrency more accessible to mainstream users. Despite years of development, crypto remains largely confined to technically sophisticated early adopters, with complex interfaces cited as a primary barrier to wider adoption.
A September 2025 study by Mercuryo and Protocol Theory found that while crypto wallet adoption is accelerating among affluent Americans, barriers including clunky user experiences and complex transaction processes continue to limit participation among broader populations. The research emphasized that adoption will only accelerate when wallets become simple and user-friendly enough to serve everyday needs.
Mastercard's integration of traditional payment network standards with blockchain infrastructure represents one approach to addressing these challenges. By leveraging its existing trust frameworks and verification systems, the company aims to create a more familiar experience for users while maintaining the benefits of decentralized technology.
For Polygon, the partnership validates its positioning as payments infrastructure and could attract additional enterprise adoption. For Mercuryo, the role as the initial alias issuer provides a significant platform to expand its presence in the crypto identity space.
The success of this initiative may depend on adoption by wallet providers and the broader ecosystem. Mastercard emphasized that the alias system works across all supported exchanges and wallets in the Crypto Credential network, but that network must grow to deliver meaningful value to users seeking a universal crypto identity.