Mastercard Expands Crypto Capabilities With Blockchain Platform

Mastercard is making significant strides in the cryptocurrency space, with a focus on developing a blockchain-based platform that could rival popular peer-to-peer (P2P) payment apps like Venmo and Zelle. This initiative aims to simplify how users interact with blockchain technology, making it more accessible and user-friendly for mainstream adoption.

The company's latest move involves enhancing its blockchain and crypto capabilities for both consumers and financial institutions. This push is part of a broader strategy to leverage recent regulatory shifts and the growing acceptance of cryptocurrencies. By integrating blockchain technology into its payment systems, Mastercard is positioning itself to offer a more secure and efficient alternative to traditional P2P payment methods.

Mastercard's efforts in this area are led by Raj Dhamodharan, the Executive Vice President of Blockchain and Digital Assets at the company. Under his leadership, Mastercard is working on a Venmo-like platform that would allow users to send and receive cryptocurrencies with ease. This platform is designed to make blockchain technology more approachable, reducing the complexity often associated with cryptocurrencies and making them more accessible to a wider audience.

One key function of the network is its round-the-clock settlement capability. In November 2024, Mastercard integrated the system with JPMorgan’s blockchain unit to streamline cross-border transactions, a process that often takes days under traditional infrastructure. The company has teamed up with major institutions like JPMorgan and Standard Chartered alongside blockchain platforms such as JPMorgan’s Onyx, Ethereum, and fintech partners like Ondo Finance to explore real-world applications such as cross-border payments, tokenized deposits, and carbon credit transactions.

On the consumer side, Mastercard has introduced over 100 crypto-focused card programmes around the world. These include credit, prepaid, and rewards cards where users are paid in cryptocurrencies instead of cashback. With 3.5 billion cardholders globally, Dhamodharan believes that “capital and spending power from the consumer side” will be essential to drive the success of digital assets.

Dhamodharan stressed that many traditional financial players are increasingly curious about the space, but they’ve been held back by regulatory uncertainty and fragmented infrastructure. With clearer rules now emerging, particularly in the US, he expects more institutions to step in. Still, adoption won’t happen overnight. He stressed the need for strong partnerships, technical groundwork, and regulatory backing.

Mastercard’s upcoming platform will face competition from several crypto-native players already active in the space, offering digital wallets, crypto payment gateways, or peer-to-peer transaction features that bridge fiat and blockchain networks. The intention of MasterCard’s app is to increase adoption so that the payments company can profit from the new and exciting sector. They will also leverage the lessons they learn on future projects, including in the realms of stablecoins, decentralised finance, central bank digital currencies, and more.