Mastercard has said it is planning to enable stablecoin acceptance and payments as part of a “360-degree approach”.
Mastercard said that while banks and FinTechs are increasingly engaging with solutions built on stablecoins, global ubiquity and scale is contingent on “everyday utility, seamless integration into existing financial systems, and an intuitive user experience.”
According to Innovate Finance, stablecoins are already a $200 billion global market, with these digital assets expected to underpin major future innovations in payments, artificial intelligence, and financial infrastructure.
Mastercard is partnering with cryptocurrency exchange OKX to launch the ‘OKX Card’, with the two businesses exploring ways to help consumers engage with digital assets using the company’s crypto trading capabilities and Web3 ecosystem.
The company is also teaming up with Nuvei and Circle to give merchants the option to receive their payments in stablecoins such as Circle’s USDC, regardless of how a consumer chooses to pay.
Mastercard plans to facilitate wallet enablement, card issuing and acceptance for stablecoins.
It said that its existing partnerships with crypto natives, including MetaMask, Kraken, Gemini, Bybit, Crypto.com, Binance, Monavate and Bleap, will allow consumers to enter the crypto ecosystem to earn rewards, pay, and spend stablecoins in their crypto wallets via traditional cards at the more than 150 million merchant locations accepting Mastercard globally.
They will also be able to withdraw stablecoins into their bank accounts with Mastercard Move, a global community of payments partners.
The business said that while stablecoins are fast and cost-effective, making them ideal for remittances and cross-border disbursements, current user experiences are “cumbersome and lack essential verification and transparency to protect their transactions.”
The company says it is solving this issue by allowing crypto exchange users to send and receive digital assets with simple and trusted usernames. Wirex, Bit2Me, Lirium, Notabene, Coins.ph and Mercado Bitcoin have already joined the ‘Mastercard Crypto Credential’ network.
Additionally, Mastercard’s Multi-Token Network (MTN) will help to enable real-time payments and redemptions, allowing partners like Ondo Finance to use on-chain tokenised assets.
JPMorgan Chase and Standard Chartered are already connected to MTN, linking deposit accounts to new and emerging digital asset use cases.
“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 realise 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.”
Stablecoins in the UK
Mastercard’s plans are revealed as industry body for UK FinTech Innovate Finance publishes a blueprint through its Digital Pound Foundation programme which is designed to help make the UK the leading international market for stablecoins.
In a new report released on Tuesday, the organisation outlined how the UK can become the most attractive jurisdiction in the world for issuing and using stablecoins, while maintaining high standards of financial stability, transparency and consumer protection.
“Without decisive and urgent action, the UK risks missing a significant window of opportunity,” said Janine Hirt, chief executive, Innovate Finance. “As the fourth most traded currency globally and home to nearly 40 per cent of FX turnover, GBP is a natural anchor for global stablecoins.”
The chief executive said that it is “not unrealistic” to suggest the UK could capture 10 to 20 per cent of this market.
“Despite other jurisdictions moving earlier, the UK has the advantage of learning from their gaps,” continued Hirt. “This plan sets out a clear, comprehensive regime to ensure stablecoins support economic growth, unlock innovation in payments and AI, and cement the UK’s role as the global centre of digital finance.”
