Coinbase and payments technology company Marqeta are extending their six-year partnership to enable businesses to provide payment cards funded by customers’ stablecoin holdings.
Under the expanded arrangement, Coinbase will custody the stablecoins and manage their conversion into traditional currencies when payments are made. Marqeta will be responsible for issuing the cards and processing transactions.
Coinbase’s Base blockchain will provide the infrastructure for settling those transactions onchain, according to a Friday release from the companies.
The service is designed for Marqeta’s business customers, including companies operating in both the cryptocurrency and traditional financial sectors. Their cardholders will be able to spend stablecoins at the “millions of merchants” that accept card payments.
Businesses will also be able to fund their card programmes around the clock, the companies said. The arrangement is intended to combine the reach of conventional card networks with the ability to move stablecoins continuously.
“Coinbase is enabling businesses to move money with the speed and efficiency they require,” said Alec Lovett, Head of Infrastructure Products Coinbase.
“Our collaboration with Marqeta will combine our stablecoin payment rails with their powerful issuing and processing capabilities to deliver real-time global transactions that meet the needs of modern consumers and businesses.”
The companies have previously worked together on Coinbase’s own card product. In October 2020, the cryptocurrency exchange selected Marqeta as the processor for its US debit card offering.
That card allowed Coinbase customers to spend cryptocurrency, including USDC, and earn rewards in cryptocurrency.
The latest announcement did not give details of the fees businesses or cardholders may face. It also did not include a launch date or confirm which stablecoins will be supported when the service initially becomes available.
