Mastercard is preparing to launch a new stablecoin payment card service through a partnership with MoonPay.

This partnership emerges as traditional payment processors increasingly expand into the digital asset sector, particularly targeting stablecoins

Mastercard is teaming up with cryptocurrency technology provider MoonPay to launch a new stablecoin payment card service that will allow users to make cryptocurrency payments at up to 150 million merchants globally, according to an announcement on Wednesday.

The new cards will be powered by Iron, a stablecoin payment company that MoonPay acquired in March, and will provide the technical infrastructure for the cards. The cards are designed to convert stablecoin payments into fiat currency at the point of sale, enabling a seamless integration with traditional retail systems and enabling the use of stablecoins for everyday transactions.

The partnership will see both companies contribute their core strengths. MoonPay will manage the cryptocurrency-to-fiat conversion, while Mastercard will provide the global payments reach and network capabilities. The new card infrastructure is expected to support retail transactions across various regions.

"We are joining forces to introduce a unique payment solution that will empower consumers and merchants with seamless and efficient experiences," said Johan van Der Berg, Chief Operating Officer at Mastercard. "This collaboration is a testament to our commitment to driving innovation and expanding the possibilities of the digital economy."

The announcement from Mastercard follows a series of blockchain-related deals that the company announced in April, which saw it partner with cryptocurrency exchange OKX to launch a crypto card and cooperate with payments processor Nuvei and USD Coin (USDC) issuer Circle to develop merchant acceptance solutions for USDC payments as part of a broader effort to scale its blockchain-based payment networks.

The project also marks the latest move by traditional payment processors into the digital asset sector, particularly targeting stablecoins amid ongoing regulatory developments.

Earlier this year, rival network Visa also began a pilot program for stablecoin transactions in six Latin American countries.