Hassan Maishera
TL;DR
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Mastercard will allow customers to spend and merchants to receive settlements in stablecoins.
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The company has also partnered with OKX, one of the leading cryptocurrency exchanges, to issue a card.
Mastercard to Begin Stablecoin Adoption
Mastercard, one of the world's leading financial institutions, will enable its customers to spend and merchants to receive payments using stablecoins. This latest development comes as the company looks to boost the adoption of stablecoins.
In a press release on Monday, Mastercard stated that,
"To allow consumers and businesses to use stablecoins as easily as the money in their bank accounts, Mastercard is providing an integrated, 360-degree approach. Consumers will be able to earn rewards, pay, and spend the stablecoins in their crypto wallets via traditional cards at the over 150 million merchant locations accepting Mastercard globally, as well as withdraw stablecoins into their bank accounts with Mastercard Move."
Furthermore, Mastercard partnered with cryptocurrency exchange OKX to release a card. The payment giant added that it is working closely with stablecoin issuers Circle and Paxos to enable merchants to receive payments in stablecoins.
Mastercard’s push comes as the United States Congress considers stablecoin legislation. The legislation is expected to increase the adoption and use of stablecoins in the country.
Mastercard continues to expand its base in the crypto space. In recent months, the company partnered with several crypto firms, including Bleap, MetaMask, Baanx, and Ledger.
Mastercard Chief Product Officer Jorn Lambert stated that,
"When it comes to blockchain and digital assets, the benefits for mainstream use cases are clear. We believe in the potential of stablecoins to streamline payments and commerce across the value chain."
USD-pegged stablecoins have a market cap of over $230 billion, but the market is expected to grow into trillions of dollars in the coming years.
