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Coinbase and Marqeta plan stablecoin-backed cards for businesses

Coinbase will handle custody, fiat conversion and settlement on Base for cards Marqeta customers can issue, letting users spend stablecoin balances at global merchants.

Crypto Bulletin Newsroom 2 min read

Coinbase and Marqeta plan stablecoin-backed cards for businesses

Coinbase will provide custody, fiat conversion and settlement for stablecoin-backed cards Marqeta customers can offer, the companies announced Oct. 16, giving cardholders a way to spend stablecoin balances at merchants worldwide. Marqeta’s announcement says the service is aimed at enterprise customers and will combine Coinbase’s stablecoin infrastructure with Marqeta’s card platform.

How will the cards use stablecoins?

Coinbase will custody users’ stablecoin balances and manage conversion between digital assets and fiat, according to Marqeta. Base, Coinbase’s blockchain, will provide the on-chain settlement infrastructure.

Marqeta will handle card issuance and payment processing, as well as bank and network relationships. Businesses will be able to fund card programs 24 hours a day, seven days a week, while cardholders will be able to spend against stablecoin balances at millions of merchants that accept cards globally, the announcement said.

Who can offer the cards?

The collaboration is for Marqeta enterprise customers, including crypto-native and non-crypto firms, the company said. Those businesses can use the arrangement to offer payment cards funded by customers’ stablecoin balances.

Digital Transactions’ report likewise describes the program as targeting businesses that use Marqeta’s card-issuing platform. The report says Coinbase’s technology will handle custody and conversion, with Base handling settlement and Marqeta running issuance and processing.

What does the deal add to their existing relationship?

Marqeta already issues crypto-backed cards for Coinbase, according to the announcement. The new collaboration extends that relationship to stablecoin-backed card programs for Marqeta’s enterprise customers.

Marqeta Chief Strategy Officer Anthony Peculic said Coinbase’s infrastructure would serve enterprise customer needs. Coinbase Head of Infrastructure Products Alec Lovett said the firms would combine Coinbase’s stablecoin payment rails with Marqeta’s issuing and processing capabilities.

Sources