Circle and Paxos Will Use fiat-backed stablecoins to Process crypto payments over the Mastercard network
Payment giant Mastercard announced yesterday that it plans to improve its range of payment cards for cryptocurrency exchanges and wallets. This includes collaboration with blockchain technology company Paxos Trust Company, technology-focused banking-as-a-service provider Evolve Bank & Trust, and stablecoin operator Circle.
The goal of Mastercard and its partners is to simplify the process of exchanging cryptocurrency for fiat currency. Currently, crypto payments on the Mastercard network must be processed in fiat currency. This conversion can be challenging for crypto companies considering launching a crypto card program.
With the help of Evolve, Paxos and Circle, Mastercard aims to advance the future of payment with digital assets by bringing certain stablecoins to its network. In this way, the challenge of processing is solved while ensuring security and compliance.
Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy, commented: “Circle and Mastercard collaboration shows that digital dollar currencies like USDC can play a fundamental role in making payments more efficient and enabling new economic activities for businesses worldwide.“
Through their platforms, Circle and Paxos want to enable the conversion of cryptocurrencies into fiat currency with fiat-covered stablecoins. This will facilitate the settlement of crypto payments for banks and crypto partners.
Charles Cascarilla, CEO and Co-founder of Paxos, said: “Paxos is developing the underlying technology that will usher in an open digital economy. Our stablecoins are trustworthy, regulated and always backed one-on-one with the US dollar. We enable the immediate processing of transactions around the clock and 365 days a year. By partnering with Mastercard, we bring the benefits of cryptocurrencies and blockchain to the everyday lives of consumers from all over the world.“
The developments could lead to a flood of new partners, as Mastercard talks with Apto Payments, Galileo Financial Technologies and i2c Inc. leads to support processing and program management. Mastercard could also provide real-time crypto wallet technology for BitPay and Uphold, as well as issue cards for Metropolitan Commercial Bank and Evolve Bank & Trust.
Stephen Pair, CEO and Co-founder of Bitpay, commented: “BitPay believes that the future of payments is based on the blockchain because it is changing the way consumers around the world send, receive and store money. Collaboration with Mastercard’s pilot project to transform digital assets into a means of payment for everyday expenses will accelerate the use of cryptocurrencies.“