Coinbase, Marqeta Partner for Stablecoin Payment Cards
MissedBlock Desk · · 2 min read
Updated
Marqeta and Coinbase Expand Partnership to Offer Stablecoin-Backed Payment Cards
Payment technology firm Marqeta and cryptocurrency giant Coinbase have announced an expanded six-year partnership that will enable enterprise clients to issue payment cards backed by stablecoins. Coinbase will handle custody and currency conversion, while Marqeta will manage card issuance and processing. The underlying blockchain infrastructure will be provided by Coinbase’s Layer 2 network, Base.
This collaboration builds upon a six-year existing relationship between the two companies. Marqeta has previously powered the backend processing for Coinbase’s U.S. savings card, a Visa debit card launched in 2020.
According to an official press release from BusinessWire, Coinbase will be responsible for the custody of stablecoins and the conversion between digital and fiat currencies. Marqeta, in turn, will focus on card issuance and payment processing. Enterprise clients will be able to fund their card programs 24/7, with on-chain settlement managed by Base.
Alec Lovett, Head of Infrastructure Products at Coinbase, stated in the announcement that this partnership merges the stablecoin payment rails with Marqeta’s robust card processing capabilities, facilitating instant global transactions for both modern consumers and businesses.
The service is primarily aimed at Marqeta’s enterprise clients, encompassing both crypto-native companies and traditional businesses. Cardholders will be able to spend stablecoins at “millions of merchants” that accept credit cards, while businesses will benefit from round-the-clock fund scheduling. However, the press release did not disclose details regarding service fees, the official launch date, or the initial stablecoins that will be supported, such as USDC, USDT, DAI, or others. These three details are expected to significantly influence enterprise adoption.
The collaboration between Coinbase and Marqeta introduces a significant player into the stablecoin payment card market. Unlike retail-focused products such as Ether.Fi and Binance Card, Marqeta’s B2B2C model allows businesses to customize card programs before offering them to end-users, aligning more closely with the traditional card issuance pathways of Visa and Mastercard.