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Mastercard has introduced a new payment ecosystem that enables both consumers and merchants to utilize stablecoins for transactions. This initiative marks a collaboration with OKX, a cryptocurrency exchange based in Seychelles, to launch a card that facilitates these transactions. Additionally, a partnership with the Canadian firm Nuvie will enable businesses to accept payments in stablecoins. Stablecoins are digital currencies whose value is anchored to underlying assets, such as fiat currencies, which helps mitigate significant market fluctuations, making them suitable for everyday transactions.
Examples of stablecoins include Tether (USDT) and Circle (USDC), both of which are pegged to the US dollar at a 1:1 ratio. Mastercard’s new program is set to allow stablecoin settlements at over 150 million merchant locations worldwide.
Mastercard Introduces Stablecoin Payments through OKX Card
According to Mastercard, stablecoins contribute to enhancing efficiency and programmability across various payment methods, including disbursements and remittances. The company has noted a growing interest from banks and fintech enterprises exploring services related to stablecoins.
With the launch of the OKX card, Mastercard users will have the ability to spend their stablecoins for daily purchases, along with the option to convert and withdraw stablecoins into fiat currencies.
Through its association with Nuvei and Circle, Mastercard also aims to enable merchants to accept stablecoin payments, independent of the payment methods chosen by consumers.
Historically, Mastercard has partnered with several crypto-related companies such as MetaMask, Kraken, Gemini, Bybit, Crypto.com, Binance, Monavate, Bleap, and Paxos. Customers using these platforms can engage with this new stablecoin ecosystem and explore various applications. The overarching goal is to make stablecoins as user-friendly as traditional cash held in bank accounts.
Earlier in the month, Mastercard announced its collaboration with Kraken to enhance card-based cryptocurrency spending across Europe and the UK. In December 2024, the company also partnered with Floki Inu to introduce a debit card facilitating crypto payments.
Additionally, Mastercard has engaged with Web3 firms like Swoo Pay and 1inch in recent years to innovate and expand its crypto-focused service portfolio.
Source
www.gadgets360.com