American financial technology and payment service provider Mastercard has partnered with MoonPay to facilitate stablecoin payments globally. This is part of Mastercard’s strategy to deepen its roots in the crypto space.
Mastercard Aims to Recreate Venmo or Zelle-like System
From the outset, the card manufacturer has been quite clear about its intentions to establish an undeniable presence in the digital asset ecosystem. This new partnership with MoonPay continues that plan, with efforts to make crypto payments seamlessly available to over 150 million businesses worldwide.
This new blockchain-based protocol’s focus group is retail and institutional users.
This initiative will simplify on-ramp and off-ramp payments, similar to a Venmo or Zelle system. MoonPay announced the deal in a press release, citing its readiness to team up with Mastercard to simplify stablecoin payments.
MoonPay’s Iron Technology For Fast Crypto Settlements
Mastercard plans to leverage MoonPay’s Iron technology, allowing efficient and effective rails integration to achieve fast crypto payments.
In March, the crypto-related financial technology company acquired this infrastructure platform. According to MoonPay, collaborating with Mastercard will provide every crypto wallet instant access to virtual Mastercards for stablecoin-powered transactions.
Notably, Visa, another financial giant, inked a strategic stablecoin deal with London-based fintech company BVNK. Visa intends to leverage BVNK’s stablecoin payment infrastructure to establish itself in blockchain-based settlement technologies further. Not much detail about the deal was disclosed.
Stablecoin Ecosystem Gains Traction and Forces Regulation
The acceptance and use of stablecoins have been on the rise recently. With this increasing traction, the niche has grown to a valuation of $228.18 billion, per a report from Forbes. In light of the sentiments surrounding stablecoins, regulators have swung into action and drafted suitable regulatory frameworks to guide the sector.
Two stablecoin regulatory proposals currently being considered are the GENIUS Act and the STABLE Act. However, Coinbase CEO Brian Armstrong has recently urged lawmakers to rethink the approach, citing that it is too strict. He believes that both bills will stifle the innovative and creative spirit in stablecoin providers.
In other words, he said they will make it harder for stablecoin providers to innovate and create better user products.
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