- Global payments giant Mastercard and decentralized oracle network Chainlink have partnered to enable payment cardholders to purchase crypto assets seamlessly.
Cryptocurrency and blockchain technology are undoubtedly experiencing the highest rate of adoption this year compared to previous ones. In another significant development for its ecosystem, Mastercard and Chainlink announced a new partnership on Tuesday to make digital purchases easier.
The New Mastercard and Chainlink Partnership
According to a press release from the parties, the new partnership combines Chainlink’s secure interoperability platform with Mastercard’s global payments network. Their goal is to connect the offchain payment portal to the decentralized finance (DeFi) ecosystem. The link will enable Mastercard account holders to conveniently purchase digital assets directly onchain through a secure fiat-to-crypto conversion feature.
Interestingly, the collaboration is reinforced by the support of Swapper Finance, Xswap, Shift4 Payments, and zerohash. The integration of solutions offered by these entities promises a next-generation app experience through the Uniswap protocol. Each collaborator complements the other in a multilayered approach to supplement the Chainlink and Mastercard platforms.
The Multilayered Approach of the Mastercard and Chainlink Digital Assets Platform
Swapper Finance leverages Xswap’s cross-chain swaps protocol on Chainlink for data protection and interoperability between the zerohash and the Shift4 Payments network. Then, Xswap bridges liquidity from decentralized exchanges (DEX), primarily from the Uniswap protocol, for final execution.
Meanwhile, zerohash manages the core compliance, custody, and transaction infrastructure. It simplifies the conversion of fiat to crypto for smart contract consumption and significantly mitigates latency in onchain transactions.
Mastercard’s Expansion in the Crypto Space
Recognizing the disruptive potential of crypto in the traditional payments industry, Mastercard has made bold moves to embrace the change instead of going against the tide.
Almost a decade ago, the card payment giant already began exploring the potential of blockchain technology, specifically examining how it could leverage its advantages for its payment business. Along the way, it also gradually funded budding startups in the sector.
By 2020, it finally pulled the trigger for its cryptocurrency partner program, allowing users to pay for goods and services using their digital asset reserves straight from their crypto wallets. Its momentum carried with a growing network of crypto business partners in the following years.
The latest additions to its fold were OKX and Nuvei in April, expanding its crypto payment capabilities to include stablecoins such as those from Circle and Paxos.
Mastercard currently hosts over three billion cardholders, with its influence further growing as it evolves in tandem with blockchain and crypto.
