Mastercard Partners Chainlink to Enable Crypto Purchases for 3 Billion Cardholders

Chainlink, a decentralized oracle network, has partnered with Mastercard to facilitate cryptocurrency purchases for the latter's three billion cardholders. This collaboration aims to bridge the gap between traditional finance and the on-chain economy, providing a seamless and compliant method for Mastercard users to access decentralized finance through conventional payment channels.

The integration leverages Chainlink's interoperability infrastructure and Mastercard's extensive global payments network. Key partners in this initiative include zerohash, Swapper Finance, Shift4 Payments, and XSwap, with the Uniswap protocol playing a crucial role in the transaction process. Zerohash handles compliance, custody, and transaction infrastructure, while Shift4 manages card processing. XSwap executes on-chain swaps by aggregating liquidity from decentralized exchanges such as Uniswap.

Sergey Nazarov, Co-Founder of Chainlink, highlighted the significance of this partnership, stating that it exemplifies the convergence of traditional finance and decentralized finance. He expressed excitement about Chainlink's role in connecting the traditional payments world with the on-chain decentralized exchanges, thereby enabling over three billion Mastercard users to participate in the next generation of trading environments.

The partnership seeks to simplify the process of purchasing crypto assets for Mastercard's global cardholders. By integrating Chainlink's technology with Mastercard's network, users can now buy cryptocurrencies directly using their existing cards. This move is expected to democratize access to decentralized finance, making it more accessible to a broader audience.

The collaboration merges web2-scale user experience with web3-native infrastructure, paving the way for a new generation of hybrid financial applications. This integration not only enhances the user experience but also ensures compliance and security, making it a significant step towards mainstream adoption of cryptocurrencies.

Mastercard has been actively embracing cryptocurrency in recent years, primarily through the issuance of cards that allow users to spend cryptocurrency at merchants in various regions. In April, it announced a partnership with Kraken to launch crypto debit cards across the UK and Europe, and it joined MetaMask to debut a self-custody crypto card. In February, the company said it had tokenized 30% of its transactions.

Mastercard's main competitor, Visa, has also been active in the crypto space. In October, it partnered with Coinbase to allow some of the exchange’s users to instantly withdraw and deposit crypto. Additionally, it has debuted a Web3 digital asset platform and invested in stablecoin payment platform BVNK.

Buying crypto with fiat currency can be challenging, especially for those unfamiliar with the technology. This friction can hinder the adoption of cryptocurrency and the progress of the industry. However, there is a growing demand for connecting with digital asset systems, as noted by Raj Dhamodharan, Mastercard’s executive vice president for blockchain and digital assets projects and partnerships. He stated, “There’s no doubt about it — people want to be able to easily connect to the digital assets ecosystem, and vice versa.”