Mastercard CEO Michael Miebach stated that stablecoins are most effective for cross-border payments, addressing issues like slow settlement times and opaque fees. By utilizing blockchain technology, these assets allow for near-instant transfers, improving working capital for businesses.
The company recently acquired digital asset infrastructure provider BVNK in a deal valued at up to $1.8 billion. This acquisition enables Mastercard to manage the full lifecycle of stablecoin transactions, including holding, moving, and converting digital assets.
Mastercard currently supports several stablecoins, such as USDC, Paxos, and RLUSD. Additionally, the firm is a backer of the Solana-based Open USD stablecoin, alongside partners like Visa and Stripe, which involve around 100 other participants.
The company intends to integrate stablecoins as an enhancement to its existing network rather than a replacement for card payments. Miebach emphasized that Mastercard remains committed to maintaining consumer protections equivalent to those provided for traditional card transactions.
