Mastercard is expanding its clearing network to support regulated stablecoins, a move that could help bring blockchain-based payments deeper into the pipes of 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 function alongside existing fiat settlement processes and are designed to give financial institutions greater flexibility in managing liquidity.
Mastercard will initially support settlement using Circle’s USDC, Paxos-issued PYUSD, USDG and USDP, Ripple’s RLUSD and SoFiUSD. The stablecoins will be available via 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 underway in financial markets. Traditionally, card transactions are authorized immediately, but settlement between banks and payment providers often takes place later in batches and is limited to 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 at settlement, where timing and liquidity matter most,” Raj Dhamodharan, Mastercard’s executive vice president of blockchain and digital assets, said in a statement.
The meaning extends beyond payments. Stablecoins have long been used primarily for crypto trading, but banks, payments companies and asset managers are increasingly viewing them as settlement assets that can move money instantly across borders and outside of traditional banking schemes.
The rollout comes as competition increases between payment networks and financial institutions looking to modernize settlement infrastructure. Circle, Ripple, Paxos and other stablecoin issuers have increasingly positioned their products as alternatives to traditional correspondent banking rails for cross-border payments and treasury transactions.
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.