Coinbase and Marqeta Bring 24/7 Stablecoin Card Spending to Millions of Merchants

Key Takeaways:

• Coinbase and Marqeta are taking a stab at stablecoin-based cards.
• Coinbase infrastructure makes it easy for businesses to finance card programs around the clock.
• Cardholders are able to spend stablecoins at millions of merchants around the world that accept such cards.

User Score

8.7

Coinbase and Marqeta are continuing to work together on their current payments partnership to continue enabling stablecoin swaps into regular card transactions for businesses.

The partnership integrates Coinbase’s crypto platform with Marqeta’s card issuing and payments platform, which are aimed at both traditional businesses and crypto-native companies.

The custody of stablecoins and conversion between digital assets and fiat will be done by Coinbase.

The on-chain infrastructure for fast & cheap settlement will be provided by Base, the blockchain of Coinbase. Marqeta will handle the issuance of cards, the processing of payments, and developing connections with banks and payment networks.

The configuration provides enterprise customers with a payments stack that does not require extra infra for custody, conversion, blockchain settlement and card processing.

There will also be more flexibility in funding businesses’ card programs outside the traditional banking hours.

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The partnership will implement a mechanism that will transform stablecoins in digital wallets into cards to use as balances.

After a stablecoin-backed card starts and sees the light of day via Marqeta, consumers will be able to spend against their stablecoin as numerous merchants already accept card payments worldwide.

Coinbase provides the digital asset layer behind those transactions, while Marqeta connects that infrastructure with existing card networks. The alliance is expected to simplify integration of stablecoins to consumer and business products, the companies say.

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Even though it is a new venture, this partnership continues a long association between the two companies, with Marqeta already distributing cards backed by crypto through Coinbase. The increased partnership puts emphasis on Marqeta’s global enterprise client base.

For Marqeta, Coinbase’s adding custody, fiat conversion and blockchain settlement services to their capabilities. Then, customers have one platform to create both traditional and digital asset payment products.

The onchain settlement layer for the stablecoin-backed card infrastructure will be determined by Base.

Adding real-time mobility and payment capabilities to Coinbase’s stablecoin payment rails and Marqeta’s issuing technology will allow businesses and consumers to make transactions around the world, Coinbase stated.

The partnership would allow businesses to create cards, infill their programs over time and provide users with direct access to their stablecoin balances via payment networks, Marqeta said.

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