Mastercard is expanding its settlement network to support regulated stablecoins, a move that could help blockchain-based payments become more deeply integrated into the global financial system.
The company said Wednesday that it plans to offer issuers and acquirers additional settlement options, including intraday, weekend and holiday settlement, as well as on-chain settlement using regulated stablecoins. The new capabilities will operate alongside existing fiat settlement processes and are designed to provide financial institutions with more flexibility in liquidity management.
Initially, Mastercard will support settlement using Circle’s USDC, Paxos-issued PYUSD, USDG and USDP, Ripple’s RLUSD and SoFiUSD. The stablecoins will be available on blockchain networks including Ethereum (ETH), Solana (SOL), Polygon (POL), Base, Arbitrum (ARB), and XRPL.
While the announcement may seem technical, it reflects a broader shift taking place in financial markets. Traditionally, card transactions are authorized instantly, but settlement between banks and payment providers often occurs later in batches and is limited by banking hours. Mastercard’s new framework brings the network closer to an always-on model where value can be transferred and settled 24 hours a day.
“The next phase of stablecoin adoption is about real-world utility, especially in settlement, where time and liquidity are most important,” Raj Dhamodharan, executive vice president of blockchain and digital assets at Mastercard, said in a statement.
The importance extends beyond payments. Stablecoins have long been used primarily for cryptocurrency trading, but banks, payments companies and asset managers increasingly see them as settlement assets that can move money instantly across borders and outside of traditional banking hours.
The launch comes as competition intensifies between payments networks and financial institutions seeking to modernize settlement infrastructure. Circle, Ripple, Paxos and other stablecoin issuers have increasingly positioned their products as alternatives to traditional correspondent banking barriers for cross-border payments and treasury operations.
Several financial institutions, including Cross River, Lead Bank, CBW Bank, ARQ and Nuvei, are expected to be among the first participants to support stablecoin settlement in the US and Latin America.
