Circle, the blockchain company behind usdc’s second-largest stability coin, has partnered up with Mastercard, an international financial services firm in the United States. Both sides aim to facilitate the conversion from cryptocurrencies to fiats as well as to test the possibility of using USDC for settlement.
Circle announced the partnership on July 20 and will launch a pilot program to help both companies in multiple ventures.
Mastercard will first use the USDC to facilitate cryptocurrency conversions to fiat and increase the ability for issuers and digital assets companies to issue a virtual currency.
M.in. will also be part of the testing. The stablecoin is a way for card issuers to “more easily account for Mastercard payments, helping to accelerate world use of an internet-based financial infrastructure.” Raj Dhamodharan, executive vice president for digital assets at Mastercard, commented on the partnership.
The engagement between Mastercard and Circle drives new opportunities for digital currency payments and trading. The cryptocurrency market is still mature, and we are collectively driving it forward to reduce friction and give people a choice.
Jeremy Allaire, the co-founder and CEO at Circle, stated that the partnership would help “the USDC grow in payments and online commerce while building a significant bridge among digital currency payment systems with large, established payment networks.”
The US financial giant with cryptocurrency already offers many products. These include m.in. Gemini launched bitcoin cashback cards earlier in the year.
Mastercard and PBOC are also in negotiations
Mastercard has also been in discussions with the People’s Bank of China and other central banks to allow local digital currencies to become fiat currencies.
Ling Hai, co-chairman for Mastercard Asia-Pacific, spoke to the SCMP:
While central banks can address their national problems with digital sovereign currencies, we can always play interoperability when the payment goes beyond national borders. For us, supporting the central bank’s digital currency is similar to adding another fiat currency to our network.
Mastercard’s global network of payment partners includes 2 million ATMs and 70,000,000 trading partners. This will allow the central bank to convert its digital currencies (CBDC) into national currencies.