Helping crypto companies offer card programmes
Mastercard announced Tuesday (July 20) that it would enhance its card programme for cryptocurrency wallets and exchanges, making it simpler for partners to convert cryptocurrency to traditional fiat currency.
The credit card giant and its partners will test the new capability to enable more banks and crypto companies to offer a card option to people wanting to spend their digital assets at places where Mastercard is accepted.
Mastercard will be working with Evolve Bank & Trust, and Paxos Trust Company, the leading blockchain infrastructure and regulated stablecoin issuance platform.
Another key partner includes Circle, a global financial technology firm and the principal operator of the USD Coin (USDC), a dollar digital currency or stablecoin. Stable coins are a class of cryptocurrency that offers price stability and is backed by reserve assets.
Enabling select stablecoins directly on its network
Mastercard announced in February 2021 that it is preparing to enable select stablecoins directly on its network, expanding the potential of digital assets and payments.
It is currently in discussions with Evolve Bank & Trust and Metropolitan Commercial Bank to issue cards, Uphold and BitPay to provide real-time crypto wallet technology, and i2c Inc, Apto Payments and Galileo Financial Technologies to support processing and program management.
“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.”Raj Dhamodharan, executive vice president of digital asset and blockchain products & partnerships at Mastercard
With the enhancements to Mastercard’s Crypto Card Program, Paxos and Circle will use their platforms to facilitate the conversion of crypto to fiat through fiat-backed stablecoins.
Making the process simpler will allow more banks and crypto partners the opportunity to offer their consumers the choice of paying with cryptocurrency.