When people spend cryptocurrency, it must enter and settle on Mastercard’s network as traditional fiat currency, such as the USD
Mastercard will enhance its card program for cryptocurrency wallets and exchanges, making it simpler for partners to convert cryptocurrency to traditional fiat currency.
Mastercard is working with Evolve Bank & Trust and Paxos Trust Company, the blockchain infrastructure and regulated stablecoin issuance platform, and Circle, a global financial technology firm and the principal operator of the USDC.
They will test this new capability to enable more banks and crypto companies to offer a card option to people wanting to spend their digital assets anywhere Mastercard is accepted.
Until now, crypto providers planning to launch or expand card programs could find it operationally challenging to perform the currency conversion.
The enhancement to Mastercard’s existing Crypto Card Program includes a suite of partners. Mastercard is in discussions with Evolve Bank & Trust and Metropolitan Commercial Bank to issue cards, Uphold and BitPay to provide real-time crypto wallet technology, and i2c Inc., Apto Payments and Galileo Financial Technologies to support processing and program management.
According to the press release, Paxos and Circle will use their platforms to facilitate the conversion of crypto to fiat through fiat-backed stablecoins.
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