A virtual Mastercard enabling purchases with USDT was announced by crypto fintech firm MoonPay, an idea that has been described by Tether’s CEO as “the best innovation since sliced bread.”
A collaboration has been formed between crypto fintech MoonPay and Mastercard to allow cryptocurrency users to make everyday purchases using Tether’s USDT stablecoin.
The MoonPay Mastercard will be accepted at 150 million locations in over 200 countries and territories where Mastercard is supported. At the point of sale, USDT will be automatically converted into fiat currency.
It was stated by MoonPay that through this partnership, access to new virtual Mastercards powered by stablecoins will be provided to every crypto wallet.
A statement was made by Scott Abrahams, executive vice president of global partnerships at Mastercard, noting that by delivering solutions which enhance the utility and widespread adoption of stablecoins, a transformation in global money movement is being initiated and a shift in traditional payment systems is being driven. It was further emphasized that, in collaboration with MoonPay, innovative and secure connections between the cryptocurrency space and mainstream financial systems are being established.
The partnership was described as “huge” by Paolo Ardoino, CEO of Tether, who stated in a post on X that “USDT cards are the best idea since sliced bread.”
Infrastructure from Iron, a stablecoin payments company acquired by MoonPay in March, will be utilized through the partnership.
Stablecoins Gaining Ground Among Payment Industry Leaders
The adoption of stablecoins has not been limited to Mastercard. In late April, a partnership was formed between Visa and Baanx to introduce a stablecoin payment card utilizing Circle’s USDC. These cards have been linked to self-custodial wallets and, similar to the Mastercard and MoonPay offering, stablecoins are converted into local fiat currency at the point of sale.
The largest portion of the stablecoin market is held by Tether, with its market capitalization reported at $151 billion. USDC holds the second position, with a market value reaching $60 billion.
A partnership was also formed between Mastercard and Baanx to introduce a card through which cryptocurrency can be spent directly from MetaMask wallets.
Stablecoins are being increasingly regarded as a highly effective payment method, influenced in part by the Trump administration’s perspective that they serve as a tool to extend and preserve the global dominance of the U.S. dollar.
Efforts to pass bipartisan legislation aimed at regulating stablecoins—potentially boosting their wider adoption—were recently stalled, as the bill was delayed by Democrats calling for enhanced consumer safeguards and a prohibition on the President deriving financial benefits from cryptocurrencies, including stablecoins.
Benefits of Using Stablecoins for Payments
The primary advantage of stablecoins as a payment instrument is derived from their peg to the U.S. dollar, which maintains price stability and enables near-instant cross-border settlement. Additionally, they are viewed as a means of safeguarding savings while facilitating convenient payments in economies experiencing high inflation.
It was stated by Mastercard in a release that substantial advantages are offered by these capabilities, whether purchases are being made at a local market in the Asia Pacific region or a Latin American merchant is making an online payment to a European supplier.
Integration with over 500 cryptocurrency platforms—including leading wallets and exchanges reaching a combined total of more than 100 million active users—has been established by MoonPay. It was reported that approximately 20 million wallets worldwide conduct stablecoin transfers monthly, while 120 million are estimated to maintain stablecoin balances.
