Another financial giant makes its move! Traditional financial institutions are rapidly entering the cryptocurrency space. On June 24, payment giant Mastercard announced it will enable on-chain cryptocurrency purchases, further advancing crypto payment mainstreaming.
Mastercard has progressively deepened its crypto strategy in recent years, transitioning from experimental exploration to practical implementation—now a key component of its global financial ecosystem.
Buy Crypto with a Swipe? Mastercard Bridges On-Chain Funding
Yesterday, Chainlink and Mastercard unveiled a strategic partnership allowing over 3 billion cardholders worldwide to buy cryptocurrencies directly on-chain using credit cards. This collaboration merges traditional finance networks with DeFi infrastructure, potentially unlocking mass adoption for on-chain finance.
Key features of this service:
- No CEX accounts or complex bridging required
- Integrated DEX frontend (Swapper Finance) initiates transactions
- Shift4 Payments processes card transactions compliantly
- ZeroHash converts fiat to crypto (BTC, ETH, etc.)
- Chainlink CCIP ensures secure settlement
- Assets delivered directly to user wallets
👉 Discover how Mastercard is revolutionizing crypto accessibility
Unlike previous crypto debit cards (e.g., Uphold/Worldcoin cards), this system enables direct fiat-to-crypto onboarding—eliminating DeFi's steep learning curve while maintaining regulatory compliance.
"We're bridging traditional commerce with digital assets through secure innovation," says Raj Dhamodharan, Mastercard's Blockchain Lead. Chainlink co-founder Sergey Nazarov adds: "This exemplifies TradFi-DeFi convergence at scale."
Three Strategic Crypto Focus Areas for 2025
Mastercard's crypto division identifies these priorities:
- On/Off-Ramp Solutions: Streamlining fiat-crypto conversions
- Crypto Credential: Replacing complex addresses with human-readable aliases
- Stablecoin Integration: Expanding USDG, PYUSD, and FIUSD use cases
Recent developments include:
- Partnership with MoonPay for stablecoin payment cards
- Collaboration with Nuvei/Circle/Paxos for merchant stablecoin settlements
- OKX Card launch for stablecoin spending
- Multi-Token Network (MTN) development for asset tokenization
Stablecoin as Settlement Backbone
Mastercard joined Paxos' USDG network to earn yield on treasury-backed stablecoins. Its Mastercard Move network now supports PYUSD/FIUSD, with plans for more stablecoin partners in 2025.
Tokenization Advancements
- Testing tokenized deposits via HKMA sandbox
- 30% of transactions already tokenized
- 250+ blockchain patents filed since 2015
- JPMorgan/Kinexys collaboration for B2B payments
"Future finance will combine bank deposits with stablecoins," Dhamodharan notes. "Regulatory clarity for on-chain deposit representation will be transformative."
FAQ: Mastercard's Crypto Strategy Explained
Q: How does Mastercard's crypto buying work?
A: Users buy via partnered DEXs—fiat converts to crypto through Shift4/ZeroHash, with Chainlink ensuring secure settlement.
Q: What cryptocurrencies are supported?
A: Initially BTC/ETH, with plans to expand based on partner integrations.
Q: Are these services available globally?
A: Currently rolling out in select markets, with phased expansion planned.
Q: How does Crypto Credential improve security?
A: It replaces wallet addresses with verified aliases to prevent transfer errors.
Q: Will Mastercard support CBDCs?
A: While focused on stablecoins now, the MTN framework could accommodate future CBDCs.
👉 Explore Mastercard's vision for blockchain payments
Mastercard's strategic trifecta—accessibility, identity, and settlement—positions it as a linchpin in TradFi-DeFi convergence. With 2025 targets set, expect more institutional-grade crypto solutions soon.