Mastercard Expands Settlement Capabilities with Stablecoins
- Mastercard plans to allow issuers and acquirers to settle card transactions using regulated stablecoins.
- New settlement options will include intraday, weekend, and holiday transactions.
- The stablecoin settlement option will support USDC, PYUSD, RLUSD, and others across various blockchain networks including Arbitrum and Ethereum.
- Major partners expected to adopt this include ARQ, CBW Bank, and Cross River.
- Visa reported a $7 billion annualized run rate in its stablecoin settlement pilot as of April.
- The overall stablecoin market is currently valued at approximately $320 billion.
Mastercard’s move to integrate stablecoins into its payment infrastructure reflects a growing trend among major payment firms to enhance transaction flexibility and liquidity management. This follows the company’s acquisition of a New York BitLicense in May for regulated digital asset activities.
With Mastercard supporting multiple stablecoins across various blockchains, it aims to streamline card settlements during weekends and holidays, enhancing overall transaction efficiency.(Source)
