On April 28, Mastercard announced via its official website a major step forward in digital finance—unveiling a plan to allow consumers to use stablecoins for purchases at over 150 million merchants worldwide that accept Mastercard.
Mastercard has previously partnered with numerous crypto companies, including MetaMask, Baanx, and Ledger. In July of last year, crypto wallet provider Argent collaborated with Mastercard and blockchain startup Kulipa to launch a new crypto payment card. More recently, Mastercard issued co-branded cards with crypto exchange OKX, and has been working closely with stablecoin issuers Circle and Paxos to enable merchants to receive payments in stablecoins.
Jorn Lambert, Mastercard’s Chief Product Officer, stated:
“The benefits of using blockchain and digital assets in mainstream applications are clear. We believe stablecoins have the potential to improve efficiency in payments and commercial processes.”
Stablecoins Going Mainstream with Legislative Support
As the U.S. Congress considers regulatory frameworks for stablecoins, major banks are preparing to expand USD-pegged stablecoin services. The total supply of USD-backed stablecoins has recently surpassed $230 billion, and the market is expected to grow into the multi-trillion-dollar range in the coming years. According to Bitwise analysts, stablecoins facilitated over $5.1 trillion in global transactions in the first half of 2024 alone.
Mastercard’s End-to-End Global Stablecoin Payment System
Mastercard is now integrating a global end-to-end stablecoin payment network, aligning with the trend of increasing regulatory clarity around stablecoins. Stablecoins are evolving beyond crypto trading tools into multi-purpose solutions for payments, spending, and remittances. To facilitate mainstream adoption, Mastercard is offering a comprehensive suite supporting crypto wallets, user verification, and card issuance.
Merchant Settlement
Through partnerships with Nuvei and Circle, Mastercard enables merchants to accept payments in stablecoins like USDC. It also works with Paxos, allowing customers to spend using Paxos-issued stablecoins.
On-Chain Remittances
Mastercard Crypto Credential empowers users of crypto exchanges to send and receive digital assets via simple and verifiable usernames, streamlining cross-border payments. Participants in this ecosystem include Wirex, Bit2Me, Lirium, Notabene, Coins.ph, and Mercado Bitcoin.
MTN for Institutional Payment and Settlement
Mastercard’s Multi-Token Network (MTN) simplifies global financial settlement using tokenized assets. Partners like Ondo Finance leverage MTN to enable real-time payments and redemptions. Major banks such as JPMorgan Chase and Standard Chartered are integrating their deposit accounts with digital asset platforms through Mastercard’s MTN.
