Mastercard unveils Stablecoin Security tool to screen payments for fraud and sanctions risks

Mastercard said Monday that it is introducing Stablecoin Security, a risk intelligence service that will let financial institutions assess the risks of stablecoin payments before funds move onchain. 

Borderless.xyz and Keyrails are the first partners announced for the product, which Mastercard unveiled at Money20/20 USA.

Stablecoin Security checks where money came from and looks for possible links to fraud, scams, sanctions violations, and other financial crime risks throughout the stablecoin payment lifecycle. It also looks at the transaction context before assigning a risk score, with Mastercard providing the information through an API, so banks can use it with the existing fraud and compliance systems they already have.

"Stablecoins are creating new possibilities for value exchange, but financial institutions need the right intelligence and controls to participate with confidence," Ann Johnson, Mastercard's executive vice president of Security Solutions, said in a statement shared with The Block.

Mastercard cited a BIS study that looked at 593 million stablecoin transfer events across 141 million Ethereum transactions in 2025. Nearly 60% of stablecoin transfer events occurred within complex, multi-step transactions, rather than simple one-to-one payments, the study found.

Mastercard's stablecoin expansion

The launch adds to Mastercard's growing stablecoin-related initiatives.

In August, Mastercard and Borderless.xyz announced a Crypto Credential pilot, involving Infinia, Walapay, and Koywe to add trust signals to cross-border stablecoin payments. Both Borderless.xyz and Keyrails have also participated in Mastercard's Start Path Blockchain and Digital Assets program. 

Borderless.xyz connects financial institutions with licensed stablecoin providers across more than 113 countries and 72 currencies, while Keyrails works on high-value cross-border trade payments, particularly in emerging markets, according to Mastercard.

Mastercard also acquired stablecoin infrastructure provider BVNK in August, after announcing an agreement worth up to $1.8 billion in March. Last week, Mastercard launched its Global Money Platform, combining fiat and stablecoin accounts, real-time conversion, card spending, and local bank payouts through a single API in its first major integration of BVNK. The company expects to bring BVNK into its Stablecoin Security plans next year.

Mastercard said the new service will launch first in North America, with commercial availability expected worldwide in 2027.