Coinbase to power Marqeta stablecoin card programs

Marqeta said Oct. 16 it will work with Coinbase to let its business customers offer stablecoin-funded cards, with Coinbase providing custody, fiat conversion and settlement on Base. The Marqeta announcement says the arrangement expands a relationship in which Marqeta already issues crypto-backed cards for Coinbase. The companies did not disclose a deal value.

The service is intended for both crypto-native and traditional businesses. Marqeta will issue the cards, process payments and manage bank and card-network relationships, according to the announcement.

How will a stablecoin balance fund a card payment?

Coinbase will hold users’ stablecoin balances and manage conversion between digital assets and fiat, while Base will provide the on-chain settlement infrastructure, Marqeta said. The companies said businesses will be able to fund card programs around the clock and cardholders will be able to spend stablecoin balances at millions of merchants that accept cards.

Marqeta handles the card transaction side; Coinbase and Base handle custody, conversion and blockchain settlement. The announcement did not name the stablecoins that card programs will support.

Who can offer the cards?

Marqeta’s enterprise customers can use the arrangement to offer stablecoin-backed cards, according to the company. The The Block report said the release did not specify an initial rollout date or fees.

The announcement describes plans for businesses to issue cards and fund programs 24/7, but does not say when the service will be available. It also leaves the supported stablecoins and pricing unannounced, so customers will need further details from the companies before launch.

Source material

• Marqeta announcement — investors.marqeta.com
• The Block report — theblock.co