Mastercard has launched a new feature for on-chain stablecoin settlements, supporting mainstream stablecoins like USDC across six major blockchain networks, including Ethereum. This groundbreaking move brings stablecoins into the core settlement layer, providing around-the-clock liquidity solutions for cross-border payments and large transactions, while forming a hybrid model with traditional fiat settlements.

Mastercard now allows issuers and acquirers to settle card transactions directly on-chain using regulated stablecoins, while also introducing intraday, weekend, and holiday settlement options for the first time.

The company announced on June 3rd that partners can choose between traditional fiat settlements and on-chain stablecoin settlements via its existing global network. The initial rollout supports Circle's USDC, Paxos-issued PYUSD, USDG, USDP, Ripple's RLUSD, and SoFiUSD, covering major blockchain networks like Ethereum, Solana, Polygon, Base, Arbitrum, and XRPL.

This marks an important evolution. Previously, Mastercard’s stablecoin initiatives mainly focused on consumer-oriented products, merchant payments, and card-linked offerings. This new capability moves stablecoins into the core settlement layer between issuers and acquirers—the actual financial conduit of the card network.

Mastercard says USDC is already supported for early on-chain settlement in some markets. ARQ, CBW Bank, Cross River, Lead Bank, and Nuvei are expected to be among the first institutions to implement these new options in the United States and Latin America.

Stablecoins move onto the core payments rails

This development gives issuers and acquirers greater flexibility in how and when to settle transactions. It is especially useful for cross-border payments, treasury management, and large-volume payments, since traditional banks’ business hours constraints may lead to liquidity issues and delays.

By supporting on-chain settlement combined with existing fiat payment flows, Mastercard effectively offers a hybrid model—blending the reliability of the global network with the speed and availability of blockchain rails.

Institutional adoption accelerates

The announcement comes as part of Mastercard’s broader push into digital asset infrastructure. This March, the company agreed to acquire stablecoin infrastructure provider BVNK for as much as $1.8 billion, showing that financial institutions and fintech firms are increasingly seeking stablecoin and tokenized deposit services.

At the same time, stablecoins are continually expanding beyond trading into payment and settlement use cases. In April, Chainalysis said that if current adoption trends continue, stablecoin trading volumes could eventually rival the processing volumes of Visa and Mastercard.

Mastercard further strengthens its regulatory standing by obtaining a New York BitLicense, through which its subsidiary conducts virtual currency business activities.

The on-chain settlement capability is expected to be gradually rolled out across more markets, partners, and regulated stablecoins, provided local regulatory approval is obtained.