Marqeta and Coinbase have revealed a partnership to expand the reach of stablecoin-backed card payments for businesses. Marqeta, Inc. a modern card issuing platform, today announced a partnership with Coinbase to support crypto-native and traditional companies. Through the partnership, businesses will be able to turn stablecoin balances into everyday purchasing power through payment cards.
The partnership builds on Marqeta’s relationship with Coinbase. It also indicates growing interest in payments in digital currencies and stablecoin infrastructure. Together, the two companies want to help businesses offer flexible payment solutions by combining their capabilities. The partnership also fits with Marqeta’s broader plan to grow stablecoin-backed card offerings through an ecosystem of partners.
The companies will use Coinbase’s cryptocurrency infrastructure to help businesses launch payment card programs. These programs will allow cardholders to spend their stablecoin holdings at merchants worldwide. Consequently, businesses can connect digital asset balances with familiar card payment experiences.
“Coinbase is enabling businesses to move money with the speed and efficiency they require,” said Alec Lovett, Head of Infrastructure Products Coinbase. “Our collaboration with Marqeta will combine our stablecoin payment rails with their powerful issuing and processing capabilities to deliver real-time global transactions that meet the needs of modern consumers and businesses.”
Stablecoin Infrastructure & Payment Processing
The expanded partnership will combine the services for Marqeta’s enterprise customers. Coinbase will hold custody of the stablecoin balances and will facilitate conversions between digital currencies and fiat currency. Meanwhile, Coinbase’s blockchain, Base, will enable fast, secure and low-cost on-chain settlement. Marqeta will provide card issuing and payment processing. It will also oversee relationships with banks and payment networks. Along with these capabilities, the integrated payment infrastructure will enable businesses to launch stablecoin-backed cards.
Businesses will also be able to fund their card programs on a 24/7 basis. The feature will give companies working in different markets and time zones greater flexibility. The cardholders will also be able to spend directly from their stablecoin balances.
The cards will work at millions of merchants around the world that accept card payments. This allows users to use their digital asset balances in their everyday purchases without having to depend on traditional cryptocurrency trading platforms alone. The partnership aims to facilitate the linking of stablecoin holdings to everyday spending. It will also allow the enterprises to enter into digital asset payments with existing card issuing and processing services.
Expanding Solutions for Digital Asset Payments
Coinbase continues its mission to link the world of traditional finance with that of decentralized finance. The company has extended its activities to the development of a digital asset infrastructure through a regulated interface. The firm’s customers are businesses looking for new ways to add digital assets to their activities. Thanks to this partnership, Marqeta gets stronger in providing its customers with payment solutions. In addition, the integration of Coinbase’s platform will enable customers to access multiple payment services for both fiat currencies and digital assets.
Moreover, this partnership is the response to the increased demand for payment systems that unite old-fashioned card schemes and blockchain technology. Companies can use Marqeta’s abilities to issue cards and process payments for stablecoin-based payments.
Finally, through integration of Coinbase’s stablecoin solution, the firm hopes to broaden the range of services it provides to its enterprise clients.
Marqeta Strengthens Its Stablecoin Card Strategy
Marqeta views the expanded relationship as a step toward building a comprehensive infrastructure for stablecoin-backed cards. The collaboration combines Coinbase’s digital asset capabilities with Marqeta’s established card issuing and processing platform.
“As we build out the complete stack for stablecoin-backed cards, expanding our relationship with Coinbase was a natural next step,” said Anthony Peculic, Chief Strategy Officer at Marqeta. “Coinbase brings scale and breadth of infrastructure to provide for the needs of our enterprise customers. Together, we will expand what businesses can deliver through Marqeta’s issuing and processing platform.”
The partnership reinforces Marqeta’s focus on helping businesses develop modern payment products. It also expands the role of stablecoin infrastructure in enterprise payment solutions.
By integrating card issuing, payment processing, custody, fiat conversion, and blockchain settlement, the companies will make it easier for businesses to adopt stablecoin-based payment programs, thereby enabling them to provide more payment options for consumers. The partnership underlines the convergence of crypto custodians and payment enablers. As companies seek to innovate in the payment space, the stablecoin-backed card will provide a bridge between the crypto and fiat currencies, offering a familiar purchasing experience for crypto assets holders.
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News Source: Businesswire.com
