Mastercard, a global leader in payment services, has announced that it successfully tokenized 30% of its transactions in 2024.
The company also acknowledged the disruptive potential of stablecoins and other cryptocurrencies in reshaping traditional financial services.
Mastercard’s Growing Focus on Blockchain and Digital Currencies
In a filing with the U.S. SEC, Mastercard detailed its progress toward “innovating the payments ecosystem.” The report highlighted advancements in transaction tokenization, the development of blockchain-based business solutions, and efforts to simplify access to digital assets.
Mastercard has taken a proactive approach to integrating blockchain technology into its payment systems.
The company stated that it is committed to supporting digital assets through a “principled approach,” which includes applying risk management practices and continuously monitoring its partners in the digital asset market.
The payment giant has also collaborated with various crypto firms, enabling users to buy cryptocurrencies with Mastercard-branded cards and spend their digital balances at businesses that accept its payments.
These efforts align with the company’s broader goal of fostering blockchain adoption while ensuring compliance with financial regulations.
Mastercard’s financial performance reflected its growth in the digital payments space, reporting a net revenue of $28.2 billion for 2024—marking a 12% increase from the previous year.
Partnership with Stellar to Enhance Crypto Transactions
One of Mastercard’s most significant moves in the crypto space was its partnership with the Stellar Development Foundation (SDF). The collaboration integrates Mastercard’s Crypto Credential solution with the Stellar network to enhance security and simplify blockchain transactions.
This partnership is expected to drive mainstream adoption of cryptocurrencies by reducing the complexities associated with crypto transfers.
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Stablecoins and Crypto Transactions Surpass Traditional Payment Giants
The rapid growth of stablecoins has become a major talking point in the financial sector. In 2024, stablecoins recorded an annual transfer volume of $27.6 trillion, surpassing the combined transaction volumes of Visa and Mastercard, according to data from crypto exchange CEX.io.
In response to this trend, U.S. lawmakers are actively working on stablecoin regulations to ensure financial stability and maintain the global dominance of the U.S. dollar.
Representatives French Hill and Bryan Steil introduced a draft bill outlining a regulatory framework for stablecoins in the U.S. The increasing political and regulatory focus on digital assets reflects their growing influence in global finance.
Mastercard Expands Crypto Credential Service to the UAE and Kazakhstan
Mastercard has also expanded its Crypto Credential service into new markets, launching operations in the UAE and Kazakhstan. This marks the company’s entry into the Eastern Europe, Middle East, and Africa (EEMEA) region.
The service simplifies Bitcoin and cryptocurrency transactions by allowing users to send and receive digital assets using simple aliases instead of complex wallet addresses. This move is expected to boost crypto adoption in emerging markets by making transactions more accessible and secure.
Mastercard’s latest initiatives highlight the increasing convergence of traditional finance and blockchain technology. By tokenizing transactions, enabling crypto payments, and expanding its blockchain-based solutions, the company is positioning itself as a key player in the future of digital payments.
Also Read: Mastercard Introduces Debit Cards in Europe For Non-Custodial Crypto Spending