Why Stablecoin Cards Still Need Visa and Mastercard

What happened

The article asks why stablecoin cards, which use digital money that can move instantly on blockchains, still depend on Visa and Mastercard for processing payments.

Confirmed

Global impact / market context

Stablecoin cards likely need Visa and Mastercard to connect digital money to everyday shops. Without these card networks, stablecoins might not work for normal purchases, limiting their use and growth.

Analyst inference

This suggests stablecoin companies may keep partnering with traditional card networks. Investors should expect these partnerships to drive adoption, but they also mean stablecoins stay tied to existing payment rails rather than replacing them soon.

Analyst inference

What to watch

1. Watch whether stablecoin card issuers announce new or expanded deals with Visa or Mastercard, signaling continued reliance on traditional networks. Analyst inference
2. Consider tracking any regulatory changes that might allow stablecoins to bypass card networks, which could shift revenue away from Visa and Mastercard. Proposed
3. Observe if merchants start accepting stablecoins directly without cards, which would reduce the need for Visa and Mastercard and change competitive dynamics. Analyst inference

Evidence

• coinpaper.com