Mastercard has joined forces with crypto firm MoonPay to launch new cards powered by stablecoins. Users and businesses will soon be able to send and receive payments in stablecoins nearly anywhere in the world.
The system uses Iron’s payment network, a stablecoin specialist that MoonPay acquired in March. All transactions will be instantly converted into local currency, making the process smooth and familiar for customers.
How the Partnership Works?
The new cards rely on Iron’s back-end platform to handle stablecoin transactions. When a user pays with a stablecoin such as one pegged to the US dollar, the system swaps it for traditional money behind the scenes.
This lets merchants accept stablecoin payments without changing their existing point-of-sale systems. The conversion is done in real time, so sellers receive their local cash amount right away.
Stablecoins Gain Traction
Stablecoins have become a popular tool in the crypto world because their value stays tied to a fiat currency. Traders and payers favour them for reliability.
By using stablecoins that mirror the US dollar, the cards avoid the wild swings common in other cryptocurrencies. For many users, this offers a predictable way to tap into digital assets for daily spending and business payments.
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Regulatory Hurdles Remain
Despite the clear utility of stablecoins, many governments have yet to spell out how they will regulate them. In late April, US regulators ended an inquiry into PayPal’s stablecoin, offering some hope for the market.
The US SEC also issued guidance indicating that many stablecoins do not qualify as securities.
Yet questions linger around versions that pay interest or use rules-based algorithms to maintain their peg. Companies pushing these tools now must balance innovation with evolving oversight.
A Surge in Card Network Innovation
Mastercard’s latest move follows a similar pilot by rival Visa. Visa began testing stablecoin cards in six Latin American nations and several partnerships.
Both firms see an opening to tap into remittances, creator payouts, and global commerce by using digital tokens instead of wires or legacy rails. Card networks are betting that stablecoin rails can speed up cross-border transfers and lower fees for end users.
More Crypto Partnerships Flourish
The industry is witnessing a flurry of tie-ups between card giants and crypto players. In March, Kraken teamed up with Mastercard to let European and UK consumers spend digital assets at over 150 million retailers worldwide.
Last year, the Stellar Development Foundation teamed up with Mastercard to weave the company’s Crypto Credential solution into the Stellar blockchain. That deal aims to make transactions safer and easier, boosting the use of blockchain technology for payments.
Why This Matters?
These collaborations show a clear trend. Traditional payments networks want in on the fast-growing world of digital money. They see stablecoins as a bridge between the old financial system and the new.
For businesses, this may mean lower costs and faster settlements. For individual users, it could unlock new ways to spend and be paid, especially across borders. As more partnerships take shape, stablecoins may become a mainstream payment tool.
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