Credit card industry leader Mastercard has announced an expanded card program for cryptocurrency markets that seeks to make crypto-to-fiat currency conversions easier. In partnership with a range of financial services companies including Evolve Bank & Trust and Metropolitan Commercial Bank, in addition to stablecoin issuers Paxos Trust Company and Circle, the company will work to extend a card option to people wanting to spend their cryptocurrency assets wherever Mastercard is accepted.
Currently, consumers spending cryptocurrencies must have their transactions entered and settled on Mastercard’s platform in traditional fiat currency, complicating the transaction process and increasing the potential for problems to arise. The company’s Crypto Card Program will partner with Paxos and Circle to leverage their platforms and facilitate the conversion of crypto to fiat by utilizing fiat-backed stablecoins, a type of cryptocurrency underwritten by reserve assets that offers greater price stability.
By enabling select stablecoins to be processed directly on its network, Mastercard is looking to expand the future utility of digital assets and payments in a safe, secure, and compliant manner. This move looks to further the increased acceptance of cryptocurrencies by merchants and financial services companies, expanding the usability of digital currencies while protecting both consumers and merchants from some of the more common pitfalls of crypto.