Mastercard has entered into an agreement that would allow retail consumers in the Asia Pacific area to spend their stablecoins anywhere Mastercard is accepted.
Mastercard has announced the launch of a stablecoin digital wallet connection with the Australian stablecoin platform Stables.
On March 20, Mastercard and Stables announced a partnership that will allow retail customers in the Asia-Pacific (APAC) region to spend their stablecoins everywhere Mastercard is accepted.
Stables will create a stablecoin-only wallet with a Mastercard-compatible payment card as part of the agreement. By converting the digital currency into fiat and settling on Mastercard's network, users can save and spend the USD Coin USDC tickers down $1.00 stablecoin. The card will be available via mobile wallets through the Stables digital application.
Kallan Hogan says, Mastercard Australasia's head of fintech, the company's engagement with Stables represents a huge step forward in terms of Web3 adoption.
"Mastercard is committed to enabling innovative payment options that allow cardholders to spend their assets wherever, how, and when they desire," Hogan stated, adding:
"Stables is developing a solution for the Web3 industry that will leverage Mastercard's global network as well as cyber and intelligence products such as CipherTrace and Ekata, with trust and security at the forefront."
The Mastercard-enabled wallet integration will be available to consumers in the second quarter of 2023, base on Stables co-founder and CEO Daniel Li. The stablecoin digital Mastercard will initially be offered to Australian consumers before expanding to Europe, the United States, the United Kingdom, and the majority of Asia Pacific.
Li said that, the payment solution uses Stables' own settlement engine, which processes all payments in USDC and works directly with Mastercard to enable settlement. Meanwhile, the wallet will accept deposits in a variety of stablecoins, including rival stablecoins Tether USDT tickers down $1.00 and Binance USD BUSD $1.00, however all deposits will be automatically converted to USDC at no cost.
Despite the current challenges involving the bankruptcy of Silvergate Bank, Stables remains confident in USDC's future, based on Li. As stated by the CEO:
"Stablecoins will play a critical role in the future financial system, linking the realms of traditional and decentralized finance. Stables will continue to collaborate with USDC and Circle as an important component of that ecosystem."
Users can top up their funds through bank transfers, direct debit, and other payment methods in addition to cryptocurrency, Li said. Stables now accepts deposits and withdrawals in Australian dollars, with future integrations adding the US currency, euro, British pound, and currencies from Asia, Latin America, and Africa.