Mastercard sees crypto as payment tech, not a revolution

Mastercard is leaning into digital assets and does not see them as a financial revolution. The payments giant views cryptos as another layer in its global infrastructure, according to Christian Rau, Head of Crypto for Europe at Mastercard.

This comes as the crypto industry went through one of its most bullish phases in history. The biggest corporations around the globe are planning to add Bitcoin and other cryptos to their balance sheet. The cumulative crypto market cap breached $4 trillion mark, although it is hovering around $3.8 trillion after a massive sell-off. 

Stablecoins are tools, not threats

In an interview, Rau stated that “Our strategy hasn’t changed in 50 years: enable people to pay and businesses to be paid, in a safe and compliant manner.” He added that “Crypto fits into this logic. We are not seeking to reinvent the system but to enrich it.”

The company is already offering on- and off-ramp services, along with cards linked to crypto accounts. He highlighted that stablecoins have the potential to speed up settlements and reduce foreign exchange risks. Meanwhile, they cannot replace the protections traditional networks provide.

Mastercard has reportedly partnered with MetaMask, Bitget, and MoonPay in order to expand crypto payments in stores. When a user wants to pay with a crypto card, their digital assets are instantly converted into fiat, which leaves the merchant side’s transaction unchanged.

However, non-custodial wallets need some extra effort. Rau stated that “With MetaMask, we had to build a smart contract that verifies fund availability in real time.”

Talking about stablecoins, whose transaction volumes now exceed those processed by Mastercard, the giant sees them as complementary. “We consider them settlement technology,” Rau said. At the same time, some blockchains boast higher throughput. Mastercard’s European crypto head stressed that scale isn’t just about transaction speed. 

Tether and USDC dominate the market

Stablecoins have posted a very healthy growth since Donald Trump took over the White House. He even signed a stablecoin law that brought more regulatory clarity for the crypto industry. The Trump family has already launched a stablecoin of its own, USD1, which is trading live in the market.

The cumulative stablecoin market cap is inching towards the $300 billion mark. It held a 24-hour trading volume of $154.7 billion on Tuesday. Tether’s USDT is leading the tally with 168.02 billion tokens in circulation. Circle’s USDC stands second in the race with 71.79 billion of circulating supply.

Mastercard doesn’t currently have plans for an in-house blockchain, but hasn’t ruled it out. “We prioritize interoperability with existing solutions. But if none meet our needs, we could consider it,” Rau further added.

The company has also expanded its partnership with Circle to support USDC and EURC settlements in Eastern Europe, the Middle East, and Africa. The deal will allow acquirers in the region to settle transactions in stablecoins for the first time, with Arab Financial Services and Eazy Financial Services among the initial participants.