Mastercard is now allowing issuers and acquirers to settle card transactions directly using regulated stablecoins onchain, while introducing intraday, weekend and holiday settlement options for the first time.
Mastercard Enables Onchain Stablecoin Settlement for Card Transactions
3 June 2026 - 11:41 CEST
By Sandmark staff
The company announced on 3 Jun that partners can choose between traditional fiat settlement and onchain stablecoin settlement through its existing global network. The initial rollout supports Circle’s USDC, Paxos-issued PYUSD, USDG, USDP, Ripple’s RLUSD and SoFiUSD across major blockchain networks including Ethereum, Solana, Polygon, Base, Arbitrum and XRPL.
This marks a significant evolution. Previously, Mastercard’s stablecoin initiatives were largely focused on consumer-facing products, merchant payouts and card-linked offerings. The new capability moves stablecoins into the core settlement layer between issuers and acquirers – the actual financial plumbing of the card network.
Mastercard said USDC is already supporting early onchain settlement flows in select markets. ARQ, CBW Bank, Cross River, Lead Bank and Nuvei are expected to be among the first institutions to implement the new options in the United States and Latin America.
Stablecoins enter core payment rails
The development gives issuers and acquirers greater flexibility in how and when they settle transactions. It is particularly useful for cross-border payments, treasury operations and high-volume payouts, where traditional banking-hour limitations can create liquidity challenges and delays.
By supporting onchain settlement alongside existing fiat processes, Mastercard is effectively offering a hybrid model that combines the reliability of its global network with the speed and availability of blockchain rails.
Institutional adoption accelerates
The announcement builds on Mastercard’s broader push into digital assets. In March, the company agreed to acquire stablecoin infrastructure provider BVNK for up to $1.8bn, signalling strong expectations that financial institutions and fintech firms will increasingly demand stablecoin and tokenized deposit services.
It also comes as stablecoins continue to expand beyond trading into payment and settlement use cases. Chainalysis said in April that stablecoin transaction volumes could eventually rival those processed by Visa and Mastercard if current adoption trends persist.
Mastercard has further strengthened its regulatory standing by obtaining a New York BitLicense, which allows a subsidiary to conduct virtual currency business activity.
The onchain settlement feature is expected to roll out gradually across additional markets, partners and regulated stablecoins, subject to local regulatory approvals.
