Mastercard (NYSE:MA) has teamed up with Australian stablecoin platform Stables to provide retail customers in the Asia-Pacific (APAC) region the ability to use their stablecoins at any merchant that accepts Mastercard payments.
Stables has developed a stablecoin-only wallet that comes with a payment card supported by Mastercard, enabling users to save and spend USD Coin (USDC).
The wallet will accept deposits in several stablecoins, including Tether (USDT) and Binance USD (BUSD) but all deposits will be converted into USDC automatically and at no cost.
The integration is expected to become available in the June quarter and will initially be launched in Australia, before expanding to Europe, the United States, the United Kingdom and most of Asia Pacific.
We've partnered with @Mastercard and @circle to allow people to spend $USDC anywhere Mastercard is accepted - that's over 54 million locations worldwide!???? pic.twitter.com/KE8PS0bEOz— Stables (@stables_money) March 21, 2023
Freedom to spend digital assets anywhere
According to Stables co-founder and CEO Erez Rachamim, the new stablecoin-only wallet and payment card launched in collaboration with Mastercard was driven by the need for "simple and accessible means" to utilise digital assets in the real world.
This initiative is aligned with the growing interest among digital asset holders to use a debit card to spend cryptocurrencies like dollars, as highlighted in a global survey by Marqeta, where 82% of respondents expressed interest in such a solution.
The survey also revealed that 55% of customers in the Asia-Pacific (APAC) region feel more confident investing in digital assets backed by reputable organisations.
Mastercard's partnership with Stables is part of the payment giant's broader exploration of payment solutions for the Web3 space.
Mastercard vice president head of Fintech for Australasia Kallan Hogan explained that the company aimed to provide "cardholders the freedom to spend their assets where, how, and when they want".
In a related effort last month, Mastercard collaborated with New Zealand-based Web3 tech innovator Immersve to develop the 'Metaverse Mastercard'.
This DeFi payments card enables users to use USDC cryptocurrency directly from their Web3 wallet to make digital, physical and metaverse purchases anywhere Mastercard is accepted.
We’re excited to grow our music footprint with the launch of the #Web3-based Mastercard Artist Accelerator, announced today at #CES! The new platform will help emerging artists pursue their passion and accelerate their music careers. ???? https://t.co/ckwiqCV3Ob— Mastercard News (@MastercardNews) January 6, 2023
What is a stablecoin?
A stablecoin is a type of digital asset that is issued by a private company and transferred through blockchain technology.
The primary purpose of stablecoins is to facilitate cryptocurrency transactions and they are generally pegged to a reference asset, such as the US dollar.
Stablecoins offer several benefits over other digital assets, such as free-floating cryptocurrencies like Bitcoin, which derive their value from market supply and demand, resulting in frequent price fluctuations.
On the other hand, stablecoins provide greater price stability due to their pegged value to a reference asset.
Other types of digital assets include central bank digital currencies, which are digital versions of paper money issued by a country's central bank, and non-fungible tokens (NFTs), which are unique digital representations of assets, such as art or collectables.