Key Takeaways
- Circle partners with Mastercard
- The partnership includes development of crypto-to-fiat portal based on USDC
- Financial giants increasingly making moves towards the crypto industry
Circle announced this partnership on June 20th on its website and provided key details. Mastercard agreed to begin testing USDC as a payment means for crypto-to-fiat conversions within its platform. USDC will serve as a conversion gateway that will facilitate transferring cryptocurrencies to fiat currency within wallets to merchant cards.
USDC has developed into one of the biggest stablecoins in the crypto space in the past year. The rise of DeFi has seen many turn to the stablecoin as an alternative coin to USDT and has become crucial in different DeFi protocols.
The partnership with Mastercard means that the USDC will be used by millions of debit card users globally. It would also accelerate crypto-fiat conversions and ensure that Mastercard leverages the growing crypto industry.
Speaking on the development, Jeremy Allaire, CEO of Circle, noted that the partnership was a great one for the stablecoin. He believes that it shows the growth USDC has attained since its launch as a bridge between existing and new payment networks.
This partnership also shows the growing adoption of cryptocurrencies in the financial space. Stablecoins, in particular, have the potential of transforming payment systems globally. This is because they are pegged to real-world assets and not volatile like Bitcoin and Ethereum. Since stablecoins are backed by blockchain technology, transactions confirm quicker, which is vital for cross-border international trades.
Mastercard and rival firm Visa have been exploring the blockchain industry in the past year with key partnerships. For example, Mastercard inked a collaboration with U.S exchange Gemini to include rewards in bitcoin on Gemini-domiciled credit cards. The pilot test phase is essential and will determine the application of the USDC within the Mastercard ecosystem.
Do you think USDC can surpass Tether in global adoption?
