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Mastercard partners with Australian stablecoin platform Stables to launch digital wallet for stablecoins

The collaboration includes the development of a digital wallet that will come with a payment card that is backed by Mastercard

Shashank Bhardwaj
Published: Mar 21, 2023 04:34:00 PM IST
Updated: Mar 21, 2023 11:16:08 PM IST

Mastercard partners with Australian stablecoin platform Stables to launch digital wallet for stablecoinsImage: Shutterstock

Global payment provider Mastercard has partnered with Stables, an Australian stablecoin platform, to integrate a stablecoin digital wallet. 

As per the collaboration, retail customers in the Asia-Pacific region can utilise their stablecoins at any location where Mastercard payments are accepted.

The collaboration between Mastercard and Stables includes the development of a digital wallet that exclusively supports stablecoins. The wallet will come with a payment card that is backed by Mastercard. 

By using this payment card, users can convert their digital currency, specifically the USD Coin stablecoin, into fiat currency and make purchases on Mastercard's network. The payment card will be available on the Stables mobile application via digital wallets.

Kallan Hogan, the head of fintech for Mastercard Australasia, has stated that the collaboration with Stables is a crucial step towards adopting Web3 technology. 

Hogan further added that Mastercard is dedicated to providing innovative payment solutions that enable users to use their assets as per their preferences. He mentioned that Stables is working towards developing a solution for the Web3 sector, which uses Mastercard's global network and security tools, such as CipherTrace and Ekata, with the primary focus being on trust and security.

According to Daniel Li, the co-founder and COO of Stables, the integration of the Mastercard-supported wallet will be accessible to users starting from the second quarter of 2023. 

Initially, the stablecoin-based digital Mastercard will be available for users located in Australia. However, there are plans to expand its reach to various regions such as Europe, the United States, the United Kingdom, and many countries in the Asia Pacific.

As per Daniel Li, Stables' proprietary settlement engine that operates on the USDC will be used to process all payments made through the Mastercard-supported wallet. The settlement engine will collaborate with Mastercard to enable seamless settlement. 

Additionally, the wallet will allow users to deposit multiple stablecoins, including Tether and Binance USD. However, all deposits will be automatically converted into USDC, and no additional fees will be charged for this conversion.

Daniel Li added that Stables is optimistic about the future of USDC despite the recent issues that arose from the collapse of Silvergate Bank. He stated that stablecoins, particularly USDC, will be crucial to the new financial system and will play a vital role in linking traditional finance with decentralised finance. 

Li further added that Stables would continue to collaborate with USDC and Circle as they consider them to be an essential part of the stablecoin ecosystem.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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