Mastercard is using the USDC stablecoin to make it easier for people to spend their cryptocurrency with its cards.
Today, when people spend cryptocurrency such as Bitcoin, Bitcoin Cash, Ether, or Litecoin, it must enter and settle on Mastercard’s network as traditional fiat currency – something that has proved a major operational barrier for crypto providers.
In February, Mastercard said it was preparing to solve this problem by enabling stablecoins directly on its network, acting as a bridge to simplify the process.
Last week the card giant revealed that it is working on a pilot with Circle, the principal USDC operator, as well as Evolve Bank & Trust and Paxos Trust, to enable banks and crypto companies to offer a card option to people wanting to spend their digital assets anywhere Mastercard is accepted.
Raj Dhamodharan, EVP, digital asset and blockchain products & partnerships, Mastercard, says: “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.”