Mastercard Expands Stablecoin Settlement to USDC, RLUSD, and Beyond

Global finance giant Mastercard is pushing stablecoins further into the mainstream with its latest enhancement, which will offer expanded settlement capabilities of credit card transactions via regulated stablecoins like Ripple's RLUSD and Circle's USDC. The firm's expansion creates options for issuers and acquirers to settle with additional intraday, holiday, and weekend card settlements, as the firm pursues a true 24/7 economy.

"The next phase of stablecoin adoption is about real-world utility, especially in settlement, where timing and liquidity matter most," said Mastercard EVP of Blockchain and Digital Assets Raj Dhamodharan, in a statement. "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 stablecoin settlement expansion piggybacks on its existing relationship with Circle and its dollar-backed stablecoin, USDC, which has already been used for settlement in select markets. Last fall, it also teamed up with Ripple and Gemini to explore the settlement of transactions on the XRP Ledger using RLUSD. In addition, the firm will support stablecoin settlement from Paxos-issued tokens like PYUSD, USDG, and USDP, and SoFiUSD, the newly 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 enabled on a handful of blockchains, including Ethereum, Solana, payments-focused network Tempo, the XRP Ledger, and Base, the Ethereum layer-2 network incubated by Coinbase. Mastercard said it secured a BitLicense from the New York Department of Financial Services on Wednesday, planting a flag on Wall Street while welcoming rigid standards enforced under one of crypto's strictest U.S. licensing frameworks. The move highlights Mastercard's focus on regulatory compliance in a sector gaining steam among financial incumbents. The company described the measure in a blog post as part of its long-term strategy for supporting stablecoins and tokenized deposits. "Clear...

Transactions in the U.S. and Latin America will firstly be supported by ARQ (formerly known as DolarApp), CBW Bank, Cross River, Lead Bank and Nuvei, though Mastercard expects 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," said Ripple SVP of Stablecoins Jack McDonald, in a statement.

Shares in the firm have dipped around 2.6% since the opening bell on Wednesday, recently changing hands around $464.87.