Mastercard is integrating stablecoin payments into its ecosystem, aiming to simplify the user experience and expand the possibilities of cryptocurrencies in everyday spending.
The payments giant is working with crypto exchange OKX to roll out the "OKX Card," designed to link crypto trading and Web3 activities with consumer spending. The card will convert stablecoins held in an OKX account into fiat currency for seamless use at any Mastercard merchant globally.
Moreover, Mastercard is enabling merchants to directly accept and settle transactions in stablecoins, beginning with Circle's USDC. This functionality, rolling out later this year, will be powered by Nuvei and Circle's joint venture, Merchant8, which focuses on facilitating cross-border and multi-currency transactions. Paxos will then expand support to additional stablecoins, such as Paxos Standard (USDP), also via Nuvei.
"When it comes to blockchain and digital assets, the benefits for mainstream use cases are clear," said Jorn Lambert, chief product officer at Mastercard. "To realize its potential, we need to make it as easy for merchants to receive stablecoin payments and for consumers to use them."
"We believe in the potential of stablecoins to streamline payments and commerce across the value chain. Unlocking this is core to how we navigate the rapidly changing world, giving people and businesses the freedom they want by providing the choices they deserve," Lambert added.
Mastercard's initiative covers the full range of stablecoin use cases, from wallet enablement and card issuance to merchant settlement and on-chain remittances. The company has previously partnered with crypto exchanges like Kraken, Binance and Crypto.com to allow users to pay with stablecoins via traditional cards.
Last year, it rolled out Mastercard Crypto Credential, a service designed to simplify sending digital assets across borders using verified usernames rather than complex wallet addresses.
In 2023, Mastercard launched its Multi-Token Network (MTN) which is being leveraged to facilitate real-time settlements and redemptions of tokenized assets.
Ondo Finance, in February, became the first provider to bring real-world assets to the network.
