Verify stablecoin risk signals before authorizing cross-border payments

Mastercard has introduced Stablecoin Security, a risk intelligence solution designed to help financial institutions assess threats before stablecoin payments are finalized. According to Help Net Security, the company announced the launch alongside initial partners Borderless.xyz and Keyrails. The service aims to provide clearer visibility into financial-crime risks associated with digital asset transactions.

The solution allows banks to identify fraud, scams and sanctions violations throughout the stablecoin payment lifecycle. It operates before funds move on-chain, giving institutions time to intervene. By combining payment intelligence with blockchain analytics, the tool generates risk scores that integrate into existing compliance workflows. This approach helps firms support stablecoin payments without building separate risk models.

Why complexity matters

A study of 593 million stablecoin transfer events in 2025 found that nearly 60% were complex, multi-step transactions rather than simple one-to-one payments. This complexity makes it difficult for institutions to assess risk across the full payment journey. The new API analyzes transaction context, fund origins and exposure to restricted parties to address this gap. It provides a complete view of risk at key points in the lifecycle.

Who is affected

Financial institutions handling cross-border and business-to-business payments are the primary users of this technology. As stablecoins play a growing role in these sectors, banks need better tools to manage risk. The API is platform-agnostic and can be integrated into current fraud and case management systems. This allows institutions to maintain trust and make informed decisions about digital asset participation.

What to watch

Monitor for updates on additional partners joining the Stablecoin Security network beyond the initial two. Watch for regulatory guidance on how pre-settlement screening impacts compliance obligations for digital assets. Track whether the risk scoring model expands to cover other types of cryptocurrency transactions beyond stablecoins. Observe how financial institutions adjust their internal policies based on the new intelligence capabilities.

What made it possible

Pre-transaction screening relies on aggregating disparate data sources to build a holistic risk profile. The weakness addressed here is the opacity of complex, multi-hop payment flows that obscure the true origin of funds. By analyzing transaction context and historical patterns before settlement, systems can detect anomalies that manual review might miss. This stage serves as a critical checkpoint, allowing institutions to halt suspicious activity before irreversible on-chain execution occurs.

What to do and how to stay safe: Mastercard

• Review current vendor contracts to determine if they offer pre-settlement risk screening for digital assets.
• Audit internal compliance workflows to ensure they can ingest and act on external risk scores before payment finalization.
• Verify that transaction monitoring systems track multi-step payment paths rather than only direct sender-to-receiver transfers.
• Consult legal counsel to understand how pre-screening data impacts record-keeping requirements for sanctions compliance.

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General security guidance from the Shell Bulletin newsroom. It is not confirmed advice from the organisations named in this story.

Frequently asked questions

What does Mastercard’s Stablecoin Security do?

It helps financial institutions identify fraud, scams and sanctions risks before stablecoin funds move on-chain.

Who are the initial partners for this solution?

Borderless.xyz and Keyrails are the initial partners announced for the Stablecoin Security solution.

Why is stablecoin risk assessment difficult?

Nearly 60% of stablecoin transfers are complex, multi-step transactions that are hard to trace.