Mastercard announced on Tuesday that it has become a member of the Global Dollar Network, a stablecoin consortium led by Paxos and including Robinhood and Kraken, the Fortune reported.
The move lets Mastercard help mint USDG, a digital token tied to the U.S. dollar. This partnership marks a shift for Mastercard from watching crypto firms to working alongside them on blockchain payments.
Supporting Multiple Stablecoins
In addition to USDG, Mastercard will add support for PayPal’s PYUSD token and Fiserv’s new FIUSD. The company already backs USDC, a popular stablecoin from Circle.
Together, these tokens let Mastercard offer a wider menu of digital dollars for spending and transfers. Executive vice president Raj Dhamodharan said the company will enable any stablecoin that meets its rules and regulations.
Boosting Cross-Border Payments
Mastercard said it will integrate stablecoins into its cross-border remittance service, Mastercard Move. This network already serves partners such as MoneyGram.
By adding USDG, PYUSD, FIUSD and USDC, the platform can let users send digital dollars abroad in seconds. Faster transfers promise lower fees for migrants sending money home and for businesses paying overseas vendors.
Also Read: JPMorgan Pilots JPMD Deposit Token On Coinbase’s Base Network Amid GENIUS Act Passing
Industry Context and the GENIUS Act
Stablecoins have gained ground in Silicon Valley as fast payment tools. Meta, Apple, Airbnb and other tech giants are exploring similar projects.
Last week, the U.S. Senate passed the GENIUS Act to regulate stablecoins. Supporters say the law will modernise old payment rails. After the vote, shares of both Mastercard and Visa fell by about 5 %, reflecting investor concerns about competition from regulated digital tokens.
Market Reaction
Investors see stablecoins as a possible threat to traditional card networks. Yet Mastercard’s entry into the Global Dollar Network sends a signal that it views these tokens as allies rather than rivals.
By joining existing stablecoin groups and backing multiple tokens, the company aims to keep its role at the centre of payments, even as blockchain gains traction.
Connecting Fiserv Clients
As part of the announcement, Mastercard revealed that Fiserv will link its banking and credit union customers to the Multi-Token Network. This connection will let those firms convert deposits into stablecoins and back again.
Dhamodharan said this feature brings the “rails” and “protections” needed to make stablecoins practical for everyday use.
Why Mastercard Made the Move?
Mastercard’s massive card network handles trillions in payments each year. The rise of crypto companies has led some to predict that these networks could be replaced.
Instead, Mastercard chose a partnership, the company said. By working with pioneers like Paxos, Robinhood and Kraken, it can shape stablecoin standards and keep its infrastructure relevant.
Regulatory and Compliance Standards
Dhamodharan emphasised that only well-regulated stablecoins will get onto Mastercard rails.
He did not mention plans to support USDT, the top stablecoin by volume, whose issuer faces regulatory scrutiny. His comments underscore the importance of compliance for any token aiming to join global payments systems.
Mastercard’s stablecoin strategy may spur other payment giants to follow suit. As the GENIUS Act moves to the House of Representatives, rules for digital dollar tokens will become clearer. Companies that back diverse, regulated tokens stand to win customers seeking fast, low-cost transfers.
Also Read: Senate Democrats Move to Block Presidential Profits from Stablecoins in GENIUS Act Amendment