Circle and Paxos will use fiat-backed stablecoins to process crypto payments on the Mastercard network
Payment giant Mastercard yesterday announced plans to improve its payment card offering for cryptocurrency exchanges and wallets. This includes the collaboration with the blockchain technology company Paxos Trust Company, the technology-oriented banking-as-a-service provider Evolve Bank & Trust and the USDC stablecoin operator Circle.
The goal of Mastercard and its partners is to make it easier to convert cryptocurrency to fiat currency. Currently, crypto payments in fiat currency must be processed on the Mastercard network and this conversion can pose challenges for crypto companies considering adopting a crypto card program.
With the help of Evolve, Paxos and Circle, Mastercard will advance the future of digital asset payments by adding certain stablecoins to its network. This solves the settlement challenge while providing security and compliance.
Circle’s Chief Strategy Officer and Head of Global Policy, Dante Disparte, said: “The collaboration between Circle and Mastercard shows that digital dollar currencies like USDC can play a fundamental role in making payments more efficient and enabling new economic activity for companies around the world. “
Through their platforms, Circle and Paxos will use fiat-backed stablecoins to enable crypto-to-fiat currency conversion. This will make processing crypto payments easier for banks and crypto partners.
Paxos CEO and Co-Founder Charles Cascarilla stated: “Paxos is developing the underlying technology that will usher in an open digital economy. Our stablecoins are trustworthy, regulated and always one-to-one secured by US dollars. We can enable the immediate processing of transactions around the clock, 365 days a year. Through the partnership with Mastercard, we bring the advantages of crypto and blockchain into everyday life for consumers worldwide. “
Developments could result in a spate of new partners as Mastercard is in talks with Apto Payments, Galileo Financial Technologies and i2c Inc. to assist with processing and program management. Mastercard could also provide real-time crypto wallet technology to BitPay and Uphold, as well as issue cards for Metropolitan Commercial Bank and Evolve Bank & Trust.
BitPay CEO and Co-Founder Stephen Pair commented, “BitPay believes that the future of payments lies in the blockchain as it changes the way consumers worldwide send, receive and store money. Working with Mastercard’s pilot to convert digital assets into dollars for daily expenses will accelerate the use of crypto as a trading vehicle by consumers.”