Mastercard Expands Stablecoin Settlement Capabilities
Global finance powerhouse Mastercard is accelerating the integration of stablecoins into mainstream financial operations with its latest enhancement, which will provide expanded settlement capabilities for credit card transactions using regulated stablecoins such as Ripple’s RLUSD and Circle’s USDC.
This strategic expansion by Mastercard offers issuers and acquirers the flexibility to conduct additional intraday, holiday, and weekend card settlements, aligning with the company’s pursuit of a truly 24/7 economy.
“The next phase of stablecoin adoption is about real-world utility, especially in settlement, where timing and liquidity matter most,” stated Raj Dhamodharan, Mastercard’s EVP of Blockchain and Digital Assets, in a press release. “By introducing intraday and weekend settlement options across our global network, we’re expanding how partners manage liquidity and operate in an always-on digital economy.”
The firm’s move into stablecoin settlement builds upon its existing collaboration with Circle and its dollar-backed stablecoin, USDC, which has already been utilized for settlements in select markets. Last fall, Mastercard also partnered with Ripple and Gemini to explore transaction settlements on the XRP Ledger using RLUSD.
Furthermore, Mastercard will support stablecoin settlements from tokens issued by Paxos, including PYUSD, USDG, and USDP, as well as SoFiUSD, the recently launched dollar-backed token from neobank SoFi.
“As demand grows for faster and more flexible movement of money, organizations are increasingly seeking infrastructure that can operate beyond traditional banking hours,” said Circle Chief Commercial Officer Kash Razzaghi in a statement. “Mastercard’s expanded settlement capabilities help meet that need, offering greater choice in how value is transferred and settled.”
Settlement will be facilitated on a select group of blockchains, including Ethereum, Solana, the payments-focused network Tempo, the XRP Ledger, and Base, Coinbase’s incubated Ethereum layer-2 network.
Initially, transactions in the U.S. and Latin America will be supported by ARQ (formerly DolarApp), CBW Bank, Cross River, Lead Bank, and Nuvei. Mastercard anticipates further expansion throughout the remainder of the year.
“Mastercard’s move into on-chain settlement is a landmark validation that blockchain technology is ready for the world’s most critical payment infrastructure,” commented Jack McDonald, Ripple SVP of Stablecoins, in a statement.
Mastercard’s shares saw a dip of approximately 2.6% since the opening bell on Wednesday, recently trading around $464.87.
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