Mastercard is expanding its settlement network to support regulated stablecoins, a move that could help bring blockchain-based payments deeper into the plumbing of the global financial system.
The company said Wednesday 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 work alongside existing fiat settlement processes and are designed to give financial institutions more flexibility in managing liquidity.
Mastercard will initially support settlement using Circle’s USDC, Paxos-issued PYUSD, USDG and USDP, Ripple’s RLUSD and SoFiUSD. Stablecoins will be available across 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 occurs later in batches and is limited by banking hours. Mastercard’s new framework moves the network closer to an always-on model, where value can be transferred and settled around the clock.
“The next phase of stablecoin adoption is about real-world usability, especially in settlement, where timing and liquidity matter most,” said Raj Dhamodharan, Mastercard’s executive vice president of blockchain and digital assets, in a statement.
The importance goes beyond payments. Stablecoins have long been primarily used for crypto trading, but banks, payment firms and asset managers are increasingly seeing them as settlement assets that can move money instantly across borders and outside of traditional banking plans.
The rollout comes as competition intensifies among payment networks and financial institutions seeking to modernize settlement infrastructure. Circle, Ripple, Paxos and other stablecoin issuers have increasingly positioned their products as alternatives to legacy correspondent banks for cross-border payments and treasury operations.
Several financial institutions, including Cross River, Lead Bank, CBW Bank, ARQ and Nuvei, are expected to be among the first participants supporting the stablecoin settlement in the US and Latin America.
