Following the GENIUS Act’s passage, Mastercard publicly embraced stablecoins, but the company sees itself at the system’s core.
The GENIUS Act is already having a tangible impact on the discourse around stablecoins. Following its passage, the payments giant Mastercard publicly embraced stablecoins, signaling that the legislation cleared a major roadblock to expansion. Still, Mastercard’s vision is not one of decentralized money.
“Stablecoins are at a turning point. The passage of the GENIUS Act by the U.S. Congress signals a new era of regulatory clarity and confidence in digital assets,” Jesse McWaters, Executive Vice President at Mastercard stated.
Stablecoins are already finding real-world uses, McWaters underlined, especially in cross-border payments. Whether they are international B2B payments or remittances, stablecoins offer a low-cost and fast alternative to traditional banking transfers and other payment methods.
Mastercard Aims for Stablecoin Hegemony
Still, McWaters believes that stablecoins are missing a key factor: an intermediary like Mastercard. Calling Mastercard “one of the world’s most trusted payments networks,” Mastercard hopes to become a key centralized intermediary in a stablecoin ecosystem.
“But to move from niche to mainstream, stablecoins need more than speed and programmability. They need to be embedded in systems that people trust — systems that protect users, resolve disputes and work seamlessly across borders and platforms,” McWaters stated. “That’s where Mastercard comes in,” he added.
The payments giant has already launched several stablecoin-focused initiatives. These include the Mastercard Multi-Token Network and Mastercard Crypto Credential, both of which add compliance and user protection features.
Mastercard’s vision moves away from the trustless systems of peer-to-peer payments. Instead, the firm applies the approach that already works for credit card payments. Still, the firm’s legacy business model is not without criticism. Notably, the credit card company faced numerous legal challenges over unfair treatment of merchants and credit card users.
