#MastercardStablecoinCards Mastercard will allow its customers to execute transactions in stablecoins, its latest initiative in an expanding effort to provide cryptocurrency-related services, the payments giant announced recently.
The New York-based company indicated that it had partnered with the cryptocurrency exchange OKX and the payment processor Nuvei to create a comprehensive ecosystem where customers can spend cryptocurrencies through their cards and merchants can accept them.
OKX and Mastercard will launch a new card that will allow stablecoin holders to spend their cryptocurrencies, according to the announcement, while Nuvei will work with Mastercard — with the help of fintech Circle — to provide the necessary infrastructure for merchants to accept stablecoins.
"We believe in the potential of stablecoins to streamline payments and commerce throughout the value chain," said Jorn Lambert, Mastercard's Chief Product Officer. "Unlocking this is crucial to navigating a rapidly changing world, giving people and businesses the freedom they desire by providing the options they deserve."
In recent years, Mastercard has forged partnerships with exchanges such as Crypto.com, Bybit, Binance, and Kraken, as well as payment service providers like Monavate and Bleap to offer cryptocurrency services to its users. The company aims to allow users to earn rewards and spend stablecoins from their wallets at 150 million merchants that accept Mastercard.
Stablecoins are digital tokens pegged to the value of assets that do not experience volatile price movements, typically U.S. dollars. These cryptocurrencies are often used by traders who quickly enter and exit transactions without the need for traditional banking services.
The world of stablecoins has become more relevant lately, as politicians are currently debating two pieces of legislation related to stablecoins.
Earlier this month, the U.S. Securities and Exchange Commission (SEC) issued new guidelines for stablecoins, advising in a statement that certain types of dollar-pegged tokens are not considered securities from the Commission's perspective.
But the SEC notably refused to provide a perspective on yield-generating stablecoins and algorithmic stablecoins, leaving the door open for interpretations by the agency later.
