Mastercard revolutionizes payments: stablecoins conquer the market!

Mastercard revolutionizes payments: stablecoins conquer the market!

On May 15, 2025, Mastercard will take a groundbreaking step into the world of payments. The company has announced that it will launch new stablecoin cards together with MoonPay, strengthening the connection between the crypto world and the traditional financial world. This development shows that blockchain technology is becoming increasingly mature and its benefits are becoming more and more visible.

The new service allows users to pay in stablecoins at up to 150 million merchants worldwide. Mastercard aims to strengthen its position in the digital payments market and establish direct competition with Visa, which recently launched a stablecoin program in six Latin American countries. The technology behind Mastercard's stablecoin cards is provided by Iron, a payments company that acquired MoonPay.

Integration into the payment system

Mastercard allows users to convert transactions directly into fiat money. This makes it easier for merchants to accept payments in stablecoins. Additionally, they have previously collaborated with various cryptocurrency companies such as OKX, Nuvei, and Circle. The goal is to create a fully integrated crypto ecosystem that is beneficial for both users and traders.

Mastercard's comprehensive program structure for stablecoins integrates these currencies into traditional payment flows. Consumers and merchants can now use stablecoins for everyday transactions. The digital wallets and cards issued through Mastercard's infrastructure support stablecoin transactions. This is accompanied by a framework for activating and managing digital wallets as well as issuing payment cards linked to crypto wallets.

Regulatory challenges

Despite the progress, there are still uncertainties surrounding the regulation of stablecoins, particularly in the US. Legislation on algorithmic stablecoins and those that generate interest is not yet clearly defined. However, major payment networks such as Mastercard and Visa continue to invest in crypto innovations to secure their market shares.

Mastercard has launched initiatives such as partnering with OKX to launch the OKX Card, which offers direct access to crypto assets. The collaboration with Nuvei and Circle enables acceptance of stablecoins such as USD Coin (USDC) and supports stablecoins issued by Paxos to further improve integration for traders.

The introduction of the Crypto Credential is intended to make it easier for users to conduct stablecoin transactions using usernames. Additionally, the Multi-Token Network (MTN) is being implemented to connect traditional bank accounts with tokenized assets, which is also supported by financial institutions such as JPMorgan and Standard Chartered. To ensure the widespread acceptance of stablecoins as a payment method, regulatory clarity is essential.

In summary, with its new initiative, Mastercard promotes global trading opportunities through the integration of stablecoins and positions itself as a key player in the acceptance of these digital means of payment. The successful future of this program will depend on widespread acceptance and an open dialogue on regulatory issues.

For more information on the implementation of stablecoins and developments at Mastercard, also read the reports on Newsbit and Cryptonomist.