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<em><b>KEY FACTS</b>: Mastercard has partnered with stablecoin issuers Circle and Paxos, along with fintech provider Nuvei, to integrate stablecoin settlements into its global payment network, enabling merchants to receive payments in stablecoins like USDC, PayPal USD (PYUSD), and Global Dollar (USDG) for faster, cost-effective cross-border transactions. This initiative leverages blockchain technology to reduce foreign exchange fees and settlement times, offering merchants greater flexibility and liquidity. The partnership, which may involve crypto exchange OKX, introduces the Mastercard Crypto Credential to simplify secure transactions and builds on the growing adoption of stablecoins, which saw $27.6 trillion in transfer volumes in 2024, outpacing Visa and Mastercard combined.</em>


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![image.png](https://files.peakd.com/file/peakd-hive/uyobong/AK2BijS65cSVLVha781Wwk4nZCdCpFotaJM2niSxgbdvPAskq3f8K9S7cUigk4p.png)
<em>Source: Mastercard News/ X</em>


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# Mastercard Partners with Circle and Paxos to Expand Stablecoin Support for Merchants Globally

Mastercard has partnered strategically with stablecoin issuers Circle and Paxos to integrate stablecoin settlements into its global payment network. The partnership, unveiled on April 28, 2025, aims to empower merchants worldwide by offering faster, more cost-effective cross-border transactions through stablecoins such as Circle’s USD Coin (USDC) and Paxos-issued stablecoins, including PayPal USD (PYUSD) and the Global Dollar (USDG). The initiative, which also involves fintech payment provider Nuvei, will enhance mainstream adoption of blockchain-based financial solutions and shows Mastercard’s ambition to bridge the gap between fiat and digital economies.

> 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 the money in their bank accounts. 
[Source](https://x.com/MastercardNews/status/1916896208187986114)

The partnership introduces a comprehensive stablecoin payment system designed to streamline merchant settlements and enhance the efficiency of global commerce. Mastercard is leveraging stablecoins to address longstanding pain points in cross-border payments, such as high foreign exchange (FX) fees, lengthy settlement times, and operational complexities. Stablecoins, known for their price stability and blockchain-enabled speed, offer a compelling alternative to traditional payment rails, which often involve multiple intermediaries and delays.

Under the new system, merchants can opt to receive payments in stablecoins, regardless of the payment method used by customers, whether it’s a credit card, debit card, or digital wallet. This flexibility is made possible through Mastercard’s collaboration with Nuvei, which provides the infrastructure to convert customer payments into stablecoins like USDC or Paxos-issued tokens for merchant settlements. The result is a seamless, near-instantaneous transaction process that reduces costs and enhances liquidity for businesses operating across borders.

At the heart of this partnership are Circle and Paxos, two leading stablecoin issuers whose tokens dominate the digital asset landscape. Circle’s USDC, the second-largest stablecoin by market capitalization, has gained widespread traction for its regulatory compliance and integration into global financial systems. In 2024 alone, USDC outpaced competitors in market cap growth, driven by its appeal in regions with high remittance activity, such as Latin America, Africa, and Southeast Asia.

Paxos, meanwhile, brings its suite of regulated stablecoins to the table, including PYUSD, which powers PayPal’s cross-border payment initiatives, and USDG, a newer stablecoin launched as part of the Global Dollar Network in November 2024. The Global Dollar Network, supported by partners like Robinhood, Kraken, and Galaxy Digital, is designed to distribute economic benefits equitably among participants, unlike some competitors that retain yield from stablecoin reserves.

Both Circle and Paxos have established themselves as trusted players in the stablecoin market, with a focus on regulatory compliance and transparency. Circle, for instance, has achieved milestones such as becoming the first stablecoin issuer to fully comply with the European Union’s Markets in Crypto-Assets (MiCA) framework and Canada’s Value-Referenced Crypto Asset rules. Paxos, regulated by the New York State Department of Financial Services and the Monetary Authority of Singapore, has expanded its global footprint through acquisitions like Membrane Finance, which grants it access to the EU market.


The rise of stablecoins reflects a broader shift in the financial ecosystem, where digital assets are increasingly seen as viable tools for everyday transactions. In 2024, stablecoin transfer volumes reached a staggering $27.6 trillion, surpassing the combined transaction volumes of Visa and Mastercard by 7.7%. This explosive growth underscores the demand for fast, low-cost alternatives to traditional payment systems, particularly in regions where banking infrastructure is underdeveloped or remittance costs are prohibitive.

Stablecoins offer several advantages over fiat-based systems. Their blockchain-based nature enables near-instant settlements, eliminating the multi-day delays common in cross-border bank transfers. Additionally, stablecoins reduce FX fees by maintaining a consistent value pegged to the U.S. dollar, making them ideal for merchants operating in volatile currency markets. For consumers, stablecoins provide a hedge against inflation in developing economies and a cost-effective means of sending remittances.

Mastercard’s embrace of stablecoins builds on its prior experiments with digital assets. In 2023, the company partnered with Australian stablecoin platform Stables to enable USDC spending in the Asia-Pacific region. More recently, Mastercard tokenized 30% of its transactions in 2024, acknowledging stablecoins as emerging competitors in the payments industry. The new partnership with Circle and Paxos takes this commitment a step further, positioning Mastercard as a leader in integrating blockchain technology into mainstream finance.

Nuvei and OKX will play crucial roles in the new development. Nuvei, a global payment technology provider, plays a critical role in the partnership by facilitating the conversion of fiat payments into stablecoins for merchant settlements. With a strong presence in Latin America, where it has implemented local acquiring services in Colombia, Mexico, and Brazil, Nuvei is well-positioned to support Mastercard’s expansion into high-growth markets. Mastercard's blog read thus:

> Latest partnerships with OKX and Nuvei will unlock a 360-degree approach where consumers can spend stablecoins and merchants can receive them, creating a seamless ecosystem...
[Source](https://www.mastercard.com/news/press/2025/april/mastercard-unveils-end-to-end-capabilities-to-power-stablecoin-transactions-from-wallets-to-checkouts/)


Additionally, posts on X indicate that OKX, a major cryptocurrency exchange, is involved in the initiative, potentially through its OKX Card, which could enable stablecoin-based spending at Mastercard-accepting merchants. While OKX’s specific role remains unconfirmed in official statements, its participation suggests that the partnership extends beyond stablecoin issuers to include key players in the crypto ecosystem, further amplifying the network’s reach.


For merchants, the ability to receive stablecoin settlements offers significant operational advantages. By reducing reliance on traditional banking systems, businesses can lower transaction costs and access funds more quickly, improving cash flow. This will particularly impact small and medium-sized enterprises (SMEs) that are 
engaged in cross-border e-commerce, where margins are often squeezed by high fees and currency conversion losses.

Consumers, meanwhile, benefit from the seamless integration of stablecoins into existing payment infrastructure. Customers can indirectly leverage the efficiency of stablecoins without needing to understand the underlying technology. This “behind-the-scenes” approach aligns with Mastercard’s broader strategy of making digital assets accessible to mainstream audiences. The partnership also introduces the Mastercard Crypto Credential, a solution designed to simplify and secure crypto transactions. 

Meanwhile, Visa, Mastercard’s primary rival, is also making strides in the stablecoin space, having joined Paxos’s Global Dollar Network alongside Robinhood and Kraken in April 2025. This competitive dynamic highlights the urgency for payment giants to innovate and capture market share in the rapidly evolving digital asset landscape. Mastercard’s partnership with Circle, Paxos, and Nuvei represents a bold bet on the future of stablecoins as a cornerstone of global finance.




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<b>Information Sources:</b>

- [Mastercard Blog](https://www.mastercard.com/news/press/2025/april/mastercard-unveils-end-to-end-capabilities-to-power-stablecoin-transactions-from-wallets-to-checkouts/)
- [Mastercard News/ X](https://x.com/MastercardNews/status/1916896208187986114)
- [Cointelegraph](https://cointelegraph.com/news/mastercard-partners-circle-paxos-expand-stablecoin-support-merchants)



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