Mastercard, the global payments giant, has announced that it will begin settling transactions in a stablecoin wallet in the Asia-Pacific region. The move is seen as an important step in the adoption of cryptos by major financial institutions.
According to the company’s press release, Mastercard will partner with an Australian-based platform called Stables to enable settlement of stablecoin USD Coin (USDC) transactions.
As a reminder, stablecoins are digital currencies designed to hold a stable value against a real asset, such as the U.S. dollar. They are seen as a way to solve the volatility issues often associated with cryptos like bitcoin.
Stables at the time of launch will only support deposits and withdrawals via the Australian Dollar. However, the integration will eventually include USD, EUR, GBP and other APAC currencies, as well as African and Latin American currencies.
The collaboration is expected to bolster the confidence in stablecoins, which over the last couple of months has been wavering. The Chief Executive Officer (CEO) of Stables, Daniel Li, in a statement to Cointelegraph, stated,
“Stablecoins will play a pivotal role in the new financial system and will be core to bridging the worlds of traditional and decentralized finance. Stables will continue to work with USDC and Circle as a pivotal part of that ecosystem.”
The adoption of stablecoins by major financial institutions like Mastercard is considered a significant step forward for the crypto industry. It indicates that stablecoins are becoming more accepted and recognized as a legitimate form of digital currency.
In conclusion, Mastercard’s decision to settle transactions in a stablecoin wallet in the Asia-Pacific region is an important step in the adoption of cryptos by traditional financial institutions. It is a clear indication that stablecoins are becoming more accepted and recognized as a legitimate form of digital currency.