Marqeta and Coinbase team up on stablecoin-backed cards
Coinbase will handle custody and fiat conversion for stablecoin-backed cards issued through Marqeta, with Base providing settlement for enterprise customers.
The Blocktape Editors 2 min read f6db28
Marqeta and Coinbase announced a collaboration on Oct. 16 to let Marqeta’s enterprise customers offer stablecoin-backed cards, with Coinbase handling custody and fiat conversion and Base providing settlement. Marqeta’s announcement says users will be able to spend from stablecoin balances at card-accepting merchants globally.
What will Coinbase and Marqeta each handle?
Coinbase will custody stablecoin balances and manage conversion between digital assets and fiat, according to Marqeta. Base, Coinbase’s blockchain, will provide the on-chain infrastructure for settlement, which the companies describe as fast and low-cost.
Marqeta will issue the cards, process payments and manage bank and network relationships. The companies said businesses will be able to issue cards and fund their programs 24 hours a day, seven days a week.
Who can offer the cards, and where can they be used?
The offering is intended for crypto-native and non-crypto firms among Marqeta’s enterprise customers. Marqeta said cardholders will be able to spend stablecoin balances at millions of merchants globally that accept cards.
The announcement did not identify specific stablecoins, customer companies, launch markets or a rollout date. It also gave no figures for expected card issuance or transaction volume.
How does the deal build on the companies’ existing work?
Marqeta said it already issues crypto-backed cards for Coinbase, and described the new collaboration as an expansion of that relationship. The expanded arrangement combines Coinbase’s stablecoin infrastructure with Marqeta’s issuing and processing platform for customer businesses.
Marqeta Chief Strategy Officer Anthony Peculic said the partnership would expand what businesses can offer through its platform. Coinbase’s Head of Infrastructure Products Alec Lovett said the firms would combine Coinbase’s stablecoin payment rails with Marqeta’s issuing and processing capabilities.
The companies have announced the collaboration, but did not specify when customers will be able to launch programs. The next step is for businesses to use the combined services to build and issue card programs.
Source material
- Marqeta’s announcement — investors.marqeta.com