In 2024, Mastercard tokenized 30% of its transactions and acknowledged stablecoins’ potential to disrupt traditional finance.
The multinational payment services behemoth Mastercard acknowledged the potential of stablecoins and other cryptocurrencies to upend established financial services and stated that it has tokenized 30% of its transactions in 2024.
The company claimed to have made significant progress toward its objective of “innovating the payments ecosystem” in a filing with the US Securities and Exchange Commission. These developments included tokenizing transactions, developing solutions to unlock blockchain-based business models, and streamlining access to digital assets.
“We are focused on supporting blockchain ecosystems and digital currencies through a principled approach (including applying prudent risk management practices and maintaining continuous monitoring of our partners that are active in the digital asset market),” said Mastercard.
Mastercard collaborated with various cryptocurrency players to enable customers to purchase cryptocurrency on cards and spend the balances where their brands were accepted.
Additionally, the business announced $28.2 billion in 2024 net revenue, a 12% rise over the year before.
Mastercard acknowledges stablecoins as competitors.
Mastercard recognized that stablecoins and other cryptocurrencies are becoming competitors in the payments sector. According to the corporation, digital currencies could “disrupt traditional financial markets” and threaten its current line of products.
It stated that as digital assets offer accessibility, immutability, and efficiency, stablecoins and cryptocurrencies may gain traction as they are regulated.
Lawmakers in the US are working on legislation to control stablecoins and strengthen the dollar’s position as the world’s dominant currency. A discussion draft of a bill that would provide a regulatory framework for stablecoins in the US has been made public by US congressmen French Hill and Bryan Steil.
In 2024, there were notable quantities of transfers for stablecoins. According to data from the cryptocurrency exchange CEX.io, the total volume of stablecoins for the year was $27.6 trillion, more than the combined volumes of Mastercard and Visa.
The growing usage of bots has been one of the leading causes of the increase in stablecoin transfer volume. Illia Otychenko, chief analyst at CEX.io, stated that using bots does not imply a lack of volume because they are employed to increase market efficiency.
