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MasterCard Tokenizes 30% of Transactions, Embracing Crypto's Growing Influence

Coin WorldThursday, Feb 13, 2025 9:50 am ET

1min read

MasterCard has made significant strides in its digital transformation journey, announcing that it has tokenized 30% of its transactions in 2024. This move is part of the company's broader strategy to integrate digital assets into its payment services, recognizing the growing influence of stablecoins and other cryptocurrencies as key competitors in the payments industry.

MasterCard's collaboration with multiple crypto platforms has enabled consumers to purchase cryptocurrencies using their cards and spend them wherever MasterCard is accepted. This integration of digital assets into the company's payment services is a testament to its commitment to innovation and adaptability in the rapidly evolving payments landscape.

The company's acknowledgment of the growing influence of stablecoins and other cryptocurrencies is a reflection of the evolving regulatory environment around digital assets. As regulation continues to evolve, digital assets like stablecoins could see increased adoption due to their accessibility, immutability, and efficiency. MasterCard's recognition of this trend positions it well to capitalize on the growing demand for digital assets in the payments industry.

MasterCard's embrace of crypto is part of a broader trend in the traditional financial services industry. In 2021, Visa, a major competitor to MasterCard, began accepting USD Coin (USDC), a stablecoin, to settle transactions on its network. The company also partnered with Crypto.com to integrate its crypto services into Visa's standard settlement process.

This growing adoption of crypto isn't just limited to consumer-facing financial services. There's also significant progress at the bank level. In October of last year, Visa announced the launch of Visa, a product designed to help banks issue and manage fiat-backed tokens on blockchain networks. The platform's potential benefits include automating complex financial processes, such as lines of credit, and facilitating real-time transactions with tokenized commodities. BBVA, a major partner, has been testing the platform and plans to launch a pilot program in 2025 using the Ethereum blockchain.

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