MasterCard has tokenized 30% of transactions in 2024 and recognized stablecoins and other cryptocurrencies as emerging competitors in the payments industry.
MasterCard has announced that it tokenized 30% of its transactions in 2024, marking a major step in its efforts to integrate digital assets into its payment services.
The company also said that it collaborated with multiple crypto platforms to allow consumers to purchase cryptocurrencies using their cards and spend them wherever MasterCard is accepted.
In addition, the company acknowledged the growing influence of stablecoins and other cryptocurrencies as key competitors in the payments industry. It pointed out that as regulation around crypto continues to evolve, digital assets like stablecoins could see increased adoption due to their accessibility, immutability, and efficiency.
Traditional finance’s embrace of crypto
Traditional financial services providers like Mastercard are increasingly integrating crypto into their offerings. In 2021, Visa, a major competitor to Mastercard, began accepting USD Coin (USDC), a stablecoin, to settle transactions on its network. The company also partnered with Crypto.com to integrate its crypto services into Visa’s standard settlement process.
This growing adoption of crypto isn’t just limited to consumer-facing financial services. There’s also significant progress at the bank level.
In October of last year, Visa introduced its Visa Tokenized Asset Platform, a product designed to help banks issue and manage fiat-backed tokens on blockchain networks.
The platform’s potential benefits include automating complex financial processes, such as lines of credit, and facilitating real-time transactions with tokenized commodities. BBVA, a major partner, has been testing the platform and plans to launch a pilot program in 2025 using the Ethereum blockchain.
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