The cryptocurrencies unit of Mastercard announced a collaboration with top-notch digital payments vendors that will reshape the segment of hybrid transactions.
Mastercard bets on crypto-to-fiat instruments: details
According to a public press release, Mastercard is enhancing its card program for cryptocurrency wallets and exchanges. As a result, a seamless crypto-to-fiat conversion experience will be available to millions of users.
.@PaxosGlobal is the Settlement Agent, providing crypto custody and settlement services, in @Mastercard's big leap into cryptocurrency.— Mike Dudas (@mdudas) July 20, 2021
Stablecoins being used and actually settled on one of the largest payment networks in the world!https://t.co/E9Nxp7yb4s
Within the context of the new program, Mastercard partnered with Circle, Paxos, Evolve Bank & Trust, Metropolitan Commercial Bank, Uphold, BitPay, Apto Payments, i2c Inc. and Galileo Financial Technologies.
As a result, Mastercard users will be able to spend their digital assets anywhere their plastic cards are accepted. In February, 2021, the company confirmed experiments with direct stablecoin transactions on top of its network.
Raj Dhamodharan, executive VP of blockchain products in Mastercard, stressed the importance of the new initiative for the retail adoption of digital currencies:
Today not all crypto companies have the foundational infrastructure to convert cryptocurrency to traditional fiat currency, and we’re making it easier. Through our engagement with Evolve, Paxos, Circle and the larger digital assets community, Mastercard expects to deliver on our promise of consumer choice to provide options to people around the world on how and when to pay.
USDC integration tests started
Circle and Paxos will see their digital assets integrated into Mastercard's suite of payment instruments. USD Coin (USDC) by Circle, the second-largest stablecoin, is going to be tested as a tool for direct crypto-to-fiat exchange and instant transfers.
Circle's Jeremy Allaire is certain that his company's USD-pegged stablecoin will act as a reliable bridge between large-scale payment operators and the digital currencies segment:
The engagement between Circle and Mastercard reinforces how USDC is growing its role in payments and commerce on the internet, while building a vital bridge between digital currency payment systems and large, established payment networks.
USD Coin (USDC) is among the fastest-growing stablecoins in terms of market capitalization. Recently, it became the second currency to break above $25 billion in market cap.