Mastercard Expands Stablecoin Payments Across Merchant Network

Mastercard has announced its foray into the digital asset economy by introducing new global capabilities to support stablecoin payments across its extensive merchant network. This move is part of the company's strategy to integrate blockchain and digital assets into mainstream use cases, making it easier for merchants to receive stablecoin payments and for consumers to use them in their daily transactions.

The payments giant is collaborating with crypto exchange OKX to launch the "OKX Card," which aims to connect crypto trading and Web3 activities with everyday spending. This initiative will allow users to link their crypto wallets to a physical card, enabling them to spend their digital assets at any merchant that accepts Mastercard.

In addition to the OKX Card, Mastercard is also working with Nuvei and Circle to enable merchants to settle transactions directly in stablecoins such as Circle’s USDC. Paxos will extend this functionality to other supported stablecoins like USDP, further expanding the range of stablecoin options available to merchants and consumers.

Jorn Lambert, chief product officer at Mastercard, emphasized the potential of stablecoins to streamline payments and commerce across the value chain. He stated, "To realize its potential, we need to make it as easy for merchants to receive stablecoin payments and for consumers to use them. We believe in the potential of stablecoins to streamline payments and commerce across the value chain. Unlocking this is core to how we navigate the rapidly changing world, giving people and businesses the freedom they want by providing the choices they deserve."

Stablecoins, which are cryptocurrencies pegged to stable assets like the U.S. dollar, have been gradually moving beyond trading venues into mainstream payments. Mastercard’s initiative covers the full range of stablecoin use cases, from wallet enablement and card issuance to merchant settlement and on-chain remittances. The company has previously partnered with crypto exchanges like Kraken, Binance, and Crypto.com to allow users to pay with stablecoins via traditional cards.

Last year, Mastercard introduced Mastercard Crypto Credential, a service designed to simplify sending digital assets across borders using verified usernames rather than complex wallet addresses. In 2023, Mastercard launched its Multi-Token Network (MTN), which is being leveraged to facilitate real-time settlements and redemptions of tokenized assets. Ondo Finance, in February, became the first provider to bring real-world assets to the network.

Mastercard's latest initiative is a significant step towards integrating digital assets into the mainstream financial system. By enabling stablecoin payments across its vast merchant network, Mastercard is making it easier for consumers to use their digital assets in everyday transactions. This move is expected to drive further adoption of stablecoins and digital assets, as well as increase the use of Mastercard's payment network.