Mastercard Allows Merchants to Accept Payments in Stablecoins

Mastercard plans to allow companies to finalize transactions and obtain payments using stablecoins like Circle’s USDC, broadening its reach within the cryptocurrency market as regulatory bodies approach clearer guidelines for this industry.

Today, the firm announced it will provide merchants with the option to receive stablecoin payments. This collaboration involves partnering with payment processor Nuvei as well as cryptocurrency issuers Circle and Paxos.

This change occurred following the introduction of the Guiding and Establishing National Innovation for U.S. Stablecoins Act by U.S. legislators. GENIUS Act The cross-party bill was approved by a Senate committee in March and aims to establish guidelines for cryptocurrency tokens tied to the U.S. dollar. According to a recent report from Standard Chartered Bank, the worldwide stablecoin market has the potential to reach $2 trillion over the next three years following the implementation of this legislation.

"As global regulations become more clear, stablecoins are transitioning from being mere cryptocurrency trading instruments to becoming vital solutions that enhance efficiency and add programmable features to transactions like payments, distributions, and money transfers," stated the payment processing company. press release .

Mastercard plans to collaborate with OKX to introduce a new card.

Alongside the settlement option, Mastercard revealed a strategy involving the crypto platform OKX to launch a new card. The payment processor collaborates with MetaMask, Kraken, Gemini, Bybit, Crypto.com, Binance, Monavate, and Bleap.

The OKX Card offered by Mastercard will provide users with immediate access to their cryptocurrency holdings. According to OKX, integrating their trading platform and Web3 resources into Mastercard’s infrastructure aims to simplify the utilization of stablecoins for routine purchases. The company has announced intentions to facilitate stablecoin transactions via conventional payment methods across over 150 million retail outlets globally.

From a commercial perspective, expansion is happening via Nuvei and Circle. Businesses can now get payments in Circle’s USDC irrespective of the payment option selected by customers during checkout. Similarly, preparations are underway to facilitate transactions with tokens launched by Paxos using an equivalent approach.

To facilitate smoother cross-border transactions, Mastercard has introduced new measures. Crypto Credential Users on partner platforms like Wirex, Bit2Me, Lirium, Notabene, Coins.ph, and Mercado Bitcoin can easily transfer or get digital funds using just their straightforward user names.

The payment processor has launched the Multi-Token Network, known as MTN, which links standard deposit accounts with tokenized assets. This network connects partners like Ondo Finance along with financial institutions such as JPMorgan and Standard Chartered for testing purposes involving stablecoins and various digital assets.

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