Mastercard links stablecoins to bank and card payments

Mastercard launched Global Money Platform on Thursday, allowing businesses to hold and convert fiat currencies and stablecoins, issue stablecoin-linked cards and send payments from stablecoin balances to recipients’ local bank accounts.

The platform connects stablecoin funds with Mastercard’s banking, money-transfer and merchant payment networks. It is designed for financial companies that want to offer stablecoin payments without developing their own infrastructure.

Global Money Platform connects with Mastercard Move, the company’s money-transfer network, which can route payments to more than 17 billion destinations, including bank accounts and cards. Stablecoin balances can also be linked to Mastercard payment cards, allowing customers to spend the funds at merchants that accept Mastercard.

The platform is Mastercard’s first major integration with BVNK since Mastercard acquired the stablecoin infrastructure company in August. Nuvei, Marqeta and other fintech companies are among the first businesses integrating with the service.

The launch expands Mastercard’s services beyond payment processing. Financial companies can use the platform to offer stablecoin services under their own brands.

Visa launched a platform in July that allows financial institutions to hold, create and transfer stablecoins. Standard Chartered research has identified increased stablecoin transaction activity this year, while the circulating supplies of major tokens including Tether’s USDt and Circle’s USDC have remained relatively flat.