Mastercard Integrates Stablecoins for Global Payments, Partners with OKX and Circle
1min read Mastercard has announced its initiative to integrate stablecoins into its global payments network, aiming to facilitate seamless transactions for both consumers and merchants. The company's strategy involves a comprehensive approach that allows users to spend and receive stablecoins with the same ease as traditional fiat currency. This integration will enable consumers to earn rewards, make payments, and spend stablecoins from their crypto wallets using traditional mastercard cards at over 150 million merchant locations worldwide. Additionally, users will have the option to withdraw stablecoins into their bank accounts through Mastercard Move.
Mastercard has partnered with cryptocurrency exchange OKX to release a card that supports stablecoin transactions. The company is also collaborating closely with stablecoin issuers Circle and Paxos to enable merchants to accept payments in stablecoins. Circle, in particular, issues USDC, which is the second-largest stablecoin by supply. This move aligns with the growing interest in stablecoins, as Congress considers legislation that could further increase their adoption and use. Big banks are also preparing to enter the market of issuing and conducting business using U.S. dollar-pegged stablecoins.
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Earlier this month, Bleap formed a strategic partnership with Mastercard to integrate stablecoin payments into traditional financial infrastructure. Mastercard has a history of collaborating with various crypto companies, including MetaMask, Baanx, and Ledger. Last July, crypto wallet provider Argent partnered with Mastercard and blockchain startup Kulipa on a new crypto-powered payment card. Mastercard's Chief Product Officer, Jorn Lambert, emphasized the potential of stablecoins to streamline payments and commerce across the value chain, highlighting the benefits of blockchain and digital assets for mainstream use cases.
The total supply of USD-pegged stablecoins recently surpassed $230 billion, and the market is expected to grow into the trillions of dollars in the coming years. Stablecoins have already generated more than $5.1 trillion worth of global transactions in the first half of 2024, according to analysts at Bitwise. This significant growth underscores the increasing relevance of stablecoins in the global financial landscape and Mastercard's strategic move to integrate them into its payment network.
