Mastercard has announced end-to-end capabilities for stablecoin settlement across its card payment network, enabling merchants to receive settlement in stablecoins and allowing stablecoin holders to spend at over 150 million merchant locations worldwide.
The payments giant unveiled the initiative on April 28, 2025, detailing how merchants will be able to settle transactions in stablecoins such as USDC regardless of how a customer pays. The rollout relies on integrations with payment processor Nuvei and stablecoin issuer Circle.
Mastercard also confirmed a card partnership with crypto exchange OKX and on-chain remittances through its Crypto Credential and Multi-Token Network products, according to CoinDesk reporting on the announcement.
What Stablecoin Settlement Means at the Network Level
In traditional card payments, settlement is the final step where funds actually move between parties, distinct from the authorization that happens at the point of sale. When a consumer taps a card, the transaction is authorized in seconds, but the merchant typically receives funds one to three business days later through a chain of issuers, acquirers, and the card network.
Mastercard’s plan inserts stablecoins into that settlement layer. Instead of receiving fiat currency at the end of the process, merchants or their acquiring banks can opt to receive stablecoins like USDC. The consumer side mirrors this: stablecoin holders can spend their balances directly through Mastercard-linked cards and wallets at over 150 million merchant locations.
The practical effect for cross-border commerce could be significant. Stablecoin settlement can bypass correspondent banking delays and foreign exchange conversion steps, potentially reducing the time and cost of international merchant payouts.
How Stablecoin Settlement Flows Through the Card Network
Authorization still runs through Mastercard’s existing rails. When a consumer pays with a stablecoin-linked card, the network validates the transaction the same way it would any card swipe. The difference occurs downstream.
At the settlement stage, Nuvei acts as the acquiring processor that handles the stablecoin conversion or pass-through. Circle, as the issuer of USDC, provides the on-ramp and off-ramp infrastructure. Merchants who opt into stablecoin settlement receive USDC rather than waiting for a traditional bank wire.
Paxos also plays a role in the broader ecosystem as a regulated stablecoin infrastructure provider. This layered approach, with Mastercard handling authorization and partners handling the stablecoin mechanics, lets the network expand into digital assets without rebuilding its core clearing system.
Mastercard Deepens Commitment With Fiserv Partnership
The April announcement did not remain a standalone initiative. On June 24, 2025, Mastercard and payments technology firm Fiserv announced a partnership to enable FIUSD settlement for merchants and stablecoin-linked card issuance for financial institutions. This follow-up moved the initiative from announcement to an issuer-acquirer execution path, a detail that most early coverage of the April rollout did not capture.
The Fiserv deal matters because it extends stablecoin settlement beyond crypto-native partners into traditional banking infrastructure. Financial institutions using Fiserv’s processing can now offer stablecoin-linked cards, broadening the potential user base well beyond existing crypto wallets. As major financial players explore updated compliance frameworks, partnerships like this one may set new standards for how stablecoin payments are handled at scale.
Today, we announced our end-to-end capabilities to support stablecoins, ensuring payments can be made or received using them – anytime, anywhere. Alongside proven leaders across Web3, finance and fintech, we’re empowering consumers and businesses to use stablecoins as easily as… pic.twitter.com/6uSpMlNK9z
— Mastercard News (@MastercardNews) April 28, 2025
Source: @MastercardNews on X
Why This Matters for Crypto Payments and Competition
Mastercard is entering a stablecoin market with a total supply exceeding $317.6 billion, with USDC alone carrying a market cap above $75.9 billion. The scale of the category suggests meaningful transaction volume is available if the payment rails work as described.
For merchants, stablecoin settlement introduces a new option alongside traditional fiat payouts. Businesses operating across borders or in regions with volatile local currencies may find stablecoin settlement attractive for its speed and dollar-peg stability. The initiative arrives as firms across the industry pursue new capital strategies to position themselves in digital asset infrastructure.
Competitive pressure is also a factor. Visa has been running its own stablecoin settlement pilots, and newer fintech players have been building crypto-native payment products for years. Mastercard’s move signals that legacy payment networks see stablecoins not as a niche experiment but as a viable settlement medium. Meanwhile, platforms continue to refine their infrastructure reliability as adoption grows.
Execution will determine whether the initiative reshapes payment flows or remains limited to early adopters. Regulatory clarity around stablecoins varies by jurisdiction, and merchant adoption depends on acquirer support, accounting treatment, and customer demand. Mastercard is building through regulated partners like Circle and Paxos, but the path from announcement to mainstream merchant settlement still requires operational proof at scale.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
