Coinbase and Marqeta team up on stablecoin-backed cards

Coinbase will provide stablecoin custody and conversion for card programs offered through Marqeta, the companies announced on Oct. 16, giving Marqeta’s enterprise customers a way to let users spend stablecoin balances at card-accepting merchants. Marqeta’s announcement says the partnership will serve crypto and non-crypto firms.

Coinbase will hold the stablecoins and convert between digital assets and fiat, while its Base blockchain will provide on-chain settlement. Marqeta will issue the cards, process payments and manage bank and card-network relationships, according to the companies.

How will the card programs work?

Businesses will be able to fund their card programs 24 hours a day, seven days a week, while cardholders can spend against stablecoin balances at millions of merchants that accept cards, Marqeta said. The announcement does not identify which stablecoins will be supported or describe how cardholders’ balances will be debited at purchase.

The arrangement combines Coinbase’s custody and conversion services with Marqeta’s card infrastructure. The companies said Base will handle settlement on-chain, but did not give details on how quickly settlement will complete or identify the banks and card networks involved.

What has the partnership announced so far?

The companies described the agreement as an expansion of an existing relationship: Marqeta already issues crypto-backed cards for Coinbase. The Block reported on the partnership and noted the release did not specify fees or a rollout date.

Marqeta Chief Strategy Officer Anthony Peculic said the expansion was part of building out the company’s stablecoin-backed card offering. Coinbase Head of Infrastructure Products Alec Lovett said the two firms would combine Coinbase’s stablecoin payment rails with Marqeta’s issuing and processing capabilities.

Sources

• Marqeta’s announcement — investors.marqeta.com
• reported on the partnership — theblock.co