Mastercard, one of the world's largest payment networks, is extending its payment risk controls to stablecoin transactions with a new tool that lets financial institutions flag suspicious activity before funds move onchain, where recovering stolen funds can be difficult.

Unveiled Monday at Money20/20 USA, a major annual payments and fintech conference, Mastercard Stablecoin Security combines traditional payment data with blockchain analytics to identify fraud, scams, sanctions exposure and other financial crime risks, according to the company's official announcement. Borderless.xyz and Keyrails are the initial partners, with global commercial availability expected next year.

Banks already use fraud detection systems to monitor conventional payments. Stablecoins — digital tokens designed to track the value of fiat currencies such as the U.S. dollar — introduce added complexity because funds can move across multiple wallets and blockchains, making it harder to assess risk throughout a transaction. Mastercard said Stablecoin Security can generate a risk score before a payment is completed, allowing banks to identify transactions that may require further review.

The launch marks another expansion of Mastercard's stablecoin business following its $1.8 billion acquisition of BVNK, a stablecoin payments platform, in August. It also follows the company's recent announcement of a Global Money Platform designed to bring stablecoin payments to businesses.

Mastercard's stablecoin push comes as growth in the supply of digital dollars has slowed significantly this year, even as transaction volumes have accelerated, driven in part by remittances and cross-border payments. A recent Standard Chartered report suggests the stablecoin market could reach $2 trillion by 2030, two years later than its initial forecast.

Related: Mastercard, Borderless test shared identity checks for stablecoin transfers