Étienne Girard
Mastercard has unveiled a bold move to bridge traditional finance with the crypto world, introducing new capabilities that let users spend stablecoins just like fiat currency.
According to a company release issued on Monday, Mastercard will provide a comprehensive solution that allows consumers to earn rewards, make payments, and use stablecoins held in crypto wallets via traditional payment cards. These cards will be accepted at over 150 million merchants globally, and users will also be able to withdraw stablecoins directly to their bank accounts using the Mastercard Move service.
Strategic Alliances with Circle, Paxos, and OKX Power the Push
As part of this expansion, Mastercard is collaborating with major crypto players. Partnerships with Circle (issuer of USDC, the second-largest stablecoin by market cap), Paxos, and exchange OKX aim to empower merchants to accept stablecoin payments effortlessly. A new Mastercard-OKX card will further streamline user access to stablecoin-backed transactions.
With U.S. lawmakers actively debating stablecoin regulations, momentum for broader adoption is building. Traditional banks are eyeing entry into the stablecoin space, exploring both issuance and operational use cases for USD-backed digital currencies.
Earlier this month, fintech firm Bleap joined forces with Mastercard to embed stablecoin payments into conventional financial infrastructure. Mastercard has previously partnered with other major crypto companies like MetaMask, Ledger, Baanx, and Argent, the latter of which helped launch a crypto-enabled payment card last year alongside blockchain startup Kulipa.
Stablecoins Are Quietly Powering Trillions in Transactions
The stablecoin ecosystem is booming, with USD-pegged digital assets surpassing $230 billion in total supply. According to analysts at Bitwise, stablecoins were used in over $5.1 trillion worth of global transactions during the first half of 2024 — a number expected to skyrocket into the trillions annually.
“Stablecoins offer undeniable advantages for streamlining payments and global commerce,” said Jorn Lambert, Mastercard’s Chief Product Officer. “We see their potential to revolutionize how value moves across borders and between parties.”
