Mastercard Launches Stablecoin Payment Functionality Across Global Network
2min read Mastercard has announced the launch of new stablecoin payment functionalities, aiming to enable consumers to spend stablecoins and merchants to receive them across its global network. This initiative, unveiled on April 28, is part of Mastercard's broader strategy to integrate stablecoins into traditional payment flows, thereby streamlining payments and commerce across the value chain.
The company is collaborating with several crypto-native and fintech partners, including OKX and nuvei, to achieve this integration. The framework introduced by mastercard covers various aspects such as wallet enablement, card issuance, merchant settlement, and cross-border remittances. This comprehensive approach ensures that stablecoins can be seamlessly used in everyday transactions, providing consumers and businesses with the freedom and choices they deserve.
Mastercard’s chief product officer, Jorn Lambert, highlighted the potential of stablecoins, stating, “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.”
With stablecoins transitioning from trading tools to payment solutions, Mastercard emphasizes the importance of integrating them into everyday commerce. This step is seen as necessary for broader adoption, especially as regulatory clarity around stablecoins continues to increase.
Mastercard will enable stablecoin spending via traditional cards through partnerships with platforms such as MetaMask, Kraken, Gemini, Bybit, Crypto.com, Binance, Monavate, and Bleap. Consumers can use stablecoins stored in their wallets at over 150 million merchant locations worldwide. Additionally, Mastercard Move facilitates withdrawals of stablecoins to bank accounts, providing a seamless experience for users.
In a joint effort, Mastercard and OKX are launching the OKX Card, which will provide users with direct access to their crypto holdings. This partnership aims to integrate stablecoins into everyday transactions by connecting OKX’s crypto trading and Web3 infrastructure to Mastercard’s global payment rails.
Merchant settlement is also expanding through collaborations with Nuvei and Circle. Merchants will be able to receive settlement payments in stablecoins such as Circle’s USDC, regardless of the payment method consumers use. Similar settlement mechanisms support Paxos-issued stablecoins, ensuring that merchants have flexible options for receiving payments.
To address challenges in stablecoin remittances, Mastercard introduced Crypto Credential. This service enables users of partner exchanges, such as Wirex, Bit2Me, Lirium, Notabene, Coins.ph, and Mercado Bitcoin, to send and receive digital assets using usernames. The goal is to enhance verification and transparency in cross-border transactions, making the process more secure and efficient.
Mastercard has also designed the Multi-Token Network (MTN) to facilitate real-time payments and redemptions. The MTN connects deposit accounts to tokenized assets, enabling partners like Ondo Finance to access tokenized financial instruments. Financial institutions, including JPMorgan and Standard Chartered, have connected to MTN to explore stablecoin and digital asset applications within their operations, further expanding the ecosystem.
Ask Aime: What impact will Mastercard's new stablecoin payment functionalities have on the global payment ecosystem?
