Mastercard Bets Big on Stablecoins—Partners With Crypto Heavyweights to Disrupt Payments
Traditional finance meets crypto rails as Mastercard throws its weight behind stablecoin adoption. The payments giant just inked deals with major blockchain players to integrate dollar-pegged digital assets into its network—because apparently, moving fiat wasn’t bureaucratic enough already.
Why this matters: Visa’s arch-rival isn’t waiting for regulators to figure out crypto. By onboarding stablecoins, Mastercard effectively builds a bridge between legacy finance and decentralized systems—while skirting the volatility that scares corporate treasurers.
The fine print: No specifics on which chains or coins get support first, but insiders hint at USDC and Ethereum-based solutions. Watch for ‘accidental’ liquidity crunches when these new payment rails go live.
Bottom line: Another domino falls in crypto’s march toward mainstream acceptance. Banks will spin this as ‘innovation’—meanwhile, their settlement departments are quietly panicking.
Stablecoin spending and settlement
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. Mastercard Move also facilitates withdrawals of stablecoins to bank accounts.
Additionally, Mastercard and OKX are jointly launching the OKX Card, which will provide users with direct access to their crypto holdings.
According to OKX, the partnership will help integrate stablecoins into everyday transactions by connecting its 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, irrespective of the payment method consumers use.
Similar settlement mechanisms support Paxos-issued stablecoins.
Enhancing user experience
Addressing challenges in stablecoin remittances, Mastercard introduced Crypto Credential, which 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 service’s goal is to enhance verification and transparency in cross-border transactions.
To facilitate real-time payments and redemptions, Mastercard designed the Multi-Token Network (MTN). 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.
