Mastercard Tokenizes 30% of Transactions, Embracing Digital Currencies

Mastercard, a global leader in payment services, has announced that it has tokenized 30% of its transactions in 2024. This significant milestone is part of the company's ongoing efforts to innovate the payments ecosystem and embrace the potential of digital currencies.

In a filing with the US Securities and Exchange Commission, Mastercard highlighted its achievements in tokenizing transactions, creating solutions for blockchain-based business models, and simplifying access to digital assets. The company stated that it is committed to supporting blockchain ecosystems and digital currencies through a principled approach that includes prudent risk management practices and continuous monitoring of its partners in the digital asset market.

Mastercard has been working with various crypto players to enable consumers to buy cryptocurrencies using their cards and spend the balances where Mastercard brands are accepted. This collaboration demonstrates the company's commitment to embracing the growing trend of digital currencies and their potential to disrupt traditional financial services.

In addition to its tokenization efforts, Mastercard reported a net revenue of $28.2 billion for 2024, marking a 12% increase from the previous year. This growth reflects the company's success in adapting to the evolving payments landscape and capitalizing on new opportunities in the digital asset market.

Mastercard has acknowledged the emergence of stablecoins and other cryptocurrencies as competitors in the payments industry. The company recognizes that digital currencies have the potential to disrupt traditional financial markets and may challenge its existing products. As stablecoins and cryptocurrencies become more regulated, they may gain popularity due to their accessibility, immutability, and efficiency.

In the United States, lawmakers are preparing legislation to regulate stablecoins and boost the dollar's global dominance. US representatives French Hill and Bryan Steil have released a discussion draft for a bill that would create a regulatory framework for stablecoins in the US. This regulatory environment could further facilitate the growth and adoption of stablecoins and other digital currencies.

Stablecoins have seen significant transfer volumes in 2024. Data from crypto exchange CEX.io showed that the annual stablecoin volume for the year reached $27.6 trillion, surpassing the combined volumes of Visa and Mastercard. One of the major factors contributing to the spike in stablecoin transfer volume has been the increasing use of bots. CEX.io lead analyst Illia Otychenko noted that bot usage