Mastercard tokenizes 30% of its transactions and recognizes stablecoin competition

Mastercard tokenizes 30% of its transactions and recognizes stablecoin competition

In 2024, Mastercard, the global leader in payment services, has decided to take a major step towards digitalisation. The company announced that it has tokenized 30% of its transactions, a key part of its strategy to innovate the payments ecosystem. With this move, Mastercard aims to support new blockchain-based business models and facilitate access to digital assets.

In an official filing with the US Securities and Exchange Commission, the company stressed its focus on a safe and responsible approach to new technologies. "Our goal is to support blockchain ecosystems and digital currencies through careful risk management and continuous monitoring of our partners in the digital asset market," Mastercard said.

The company has also partnered with various players in the cryptocurrency market, which will allow consumers to purchase cryptocurrencies using the cards and spend balances where they are accepted. The move greatly facilitates the use of digital currencies in everyday life.

Mastercard also reported an increase in net income for 2024 to $28.2 billion, a 12% increase from the previous year. This confirms that the digital transformation is proving successful.

The company clearly recognizes that stablecoins and other cryptocurrencies are becoming competitors in the world of payment services. Mastercard warns that these digital currencies have the potential to disrupt traditional financial markets and pose a challenge to its existing products. With increasing regulation and trust in digital assets, stablecoins are becoming increasingly popular, offering accessibility, immutability and efficiency.

In the US, legislators are preparing to regulate stablecoins to support the global dominance of the dollar. US Representatives French Hill and Bryan Steil recently released a discussion draft of a bill to create a regulatory framework for stablecoins in the US. This initiative could fundamentally affect the future of digital currencies.

According to data from crypto exchange CEX.io, stablecoins saw a significant volume of transfers in 2024, reaching $27.6 trillion, surpassing the combined volume of Visa and Mastercard. This massive growth is partly attributed to the increased use of automated trading bots that improve market efficiency.

CEX.io's lead analyst, Illia Otychenko, said the use of bots does not mean that volume is scarce, but rather makes trading easier and increases liquidity in the market.

Thus, Mastercard is not only actively tokenizing its transactions, but also preparing for the new challenges posed by the rapidly evolving world of cryptocurrencies. As the market evolves, it will be interesting to see how this multinational giant adapts and what this means for the future of payment services.

*This is not an investment recommendation.

Coingarage team