Nium, a global payments infrastructure provider, has launched a platform that allows businesses to issue cards funded with stablecoins through Visa and Mastercard. The latest development will allow you to use your digital dollar balance at merchants using your existing card network.
According to Nium, the system converts stablecoin balances into fiat currency at the point of sale and handles payments, compliance, and card network integration through a single integration.
The company said it expects to reduce the time needed to launch a stablecoin card program from months to days by consolidating conversion, payments, and compliance into a single integration layer.
“Stablecoins are having a moment of prominence as U.S. lawmakers look to clarify the rules of the game,” consultancy Bain & Company recently said.
The proposed CLARITY Act has stalled in Congress as the cryptocurrency industry and the nation’s banks battle over stablecoin rewards.
According to data from DefiLlama, the stablecoin market capitalization is over $315 billion at the time of writing, with Tether $USDT ($USDT) represents approximately $184 billion, or approximately 58% of the market.
Related: Ethereum risks losing second place as stablecoins rise
Stablecoin payments expand across networks and platforms
Despite the US law, activity around stablecoin payments is expanding across card networks, fintechs, and technology platforms.
Visa announced in October that it would expand stablecoin support to four tokens across four blockchains, allowing for exchange into more than 25 fiat currencies. We already support stablecoins like USDC and Euro Coin from Circle, PayPal USD and Global Dollar on networks like Ethereum, Solana, Avalanche, and Stellar.
Earlier this month, Mastercard agreed to acquire stablecoin infrastructure company BVNK in a deal worth up to $1.8 billion, including contingent payments, to connect fiat payment rails with on-chain transactions.
Beyond card networks, PayPal has launched its services. $PYUSD ($PYUSD) August 2023 Stablecoin, the recently introduced PYUSDx is a platform that allows developers to issue dollar-backed tokens. $PYUSD Use in applications and transactions within the digital ecosystem.
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