The partnership is aimed towards simplifying cryptocurrency-to-fiat conversions within Mastercard’s existing payment network
American fintech giant Mastercard announced plans to revamp its crypto card program, to enable traditional banks and crypto companies to offer cards to its users for transacting with digital assets.
According to the official statement:
“Mastercard and its partners 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.”
This effort involves Mastercard partnering with crypto businesses to involve “cryptocurrency wallets and exchanges, making it simpler for partners to convert cryptocurrency to traditional fiat currency.”
To allow exposure to cryptocurrency for its users, the New York-based financial institution has publicly stated fresh partnerships with Circle, Paxos, Evolve Bank & Trust, Metropolitan Commercial Bank, Uphold, BitPay, Apto Payments, i2c Inc. and Galileo Financial Technologies.
The revised card program will help Mastercard utilize its massive payment network to not only take away the friction between the fiat and crypto but also to provide more alternatives for users interested in using cryptocurrency.
To help reduce the inherent volatility of cryptocurrency and its related conversion complications, Mastercard will take advantage of Circle’s dollar-pegged stablecoin USD Coin (USDC) for instant conversions while initiating the payment transfers.
Related: Visa to approve Bitcoin spending card for Australian startup CryptoSpend
Mastercard’s decision to explore its traditional payments infrastructure within the crypto space may not come as a surprise to those who know about Visa’s ongoing move into offering crypto debit cards.
As Cointelegraph previously reported, Visa intends to distribute Bitcoin (BTC) debit card to Australian citizens that will be capable of transacting other popular altcoins such as Ether (ETH), XRP, and Bitcoin Cash (BCH).
Related: Cash or Plastic? Countries Where Crypto Debit Cards Are Fair Game
Cointelegraph’s research recently highlighted the rise of crypto debit cards to identify the various options they make available for the general public.