Mastercard steps up stablecoin push… “set to become infrastructure linking fiat and crypto”

Mastercard is expected to cement its position as a key piece of infrastructure connecting virtual assets (cryptocurrencies) with fiat currencies, following its move to acquire a stablecoin company, an analysis said.

According to The Block on the 25th (local time), Mizuho said in a report that Mastercard’s acquisition of stablecoin firm BVNK would strengthen its role as a “network connector.”

Mizuho analysts said stablecoins are more likely to serve as a catalyst for accelerating network expansion than to encroach on the company’s existing card business.

They added that stablecoins could offer growth opportunities in areas where card-payment penetration has been relatively low, including business-to-business (B2B) payments, cross-border remittances and the creator economy.

“Stablecoins enable faster, cheaper 24/7 payments while allowing cards to retain their competitiveness in consumer payments,” they said.

Mastercard is pursuing the acquisition of BVNK in a deal valued at up to $1.8 billion. BVNK provides stablecoin on- and off-ramps, conversions into tokenized deposits, cross-chain capabilities and wallet infrastructure.

Mizuho said the BVNK deal would broaden Mastercard’s existing role. While the company has traditionally provided payments infrastructure centered on its card network, it would expand to a structure that also includes conversion between stablecoins and fiat currencies.

Mastercard is also working with partners such as MetaMask and Gemini to provide infrastructure for issuing crypto-backed cards, and usage has been steadily rising recently.