Mastercard teams up with Chainlink to facilitate direct blockchain-based transactions
In a groundbreaking development, Mastercard, the global leader in payment solutions, has partnered with Chainlink to facilitate the use of decentralized exchanges (DEXs) for direct stablecoin purchases. This move signifies a vote of confidence in the growing market of stablecoins, with experts predicting that the total market cap of stablecoins will surpass $150 billion by 2025.
With this integration, Mastercard's 3.5 billion cardholders can now purchase cryptocurrencies directly on DEXs through a seamless, secure, and compliant fiat-to-crypto conversion system. The collaboration, which also involves key partners such as zerohash, Shift4 Payments, Swapper Finance, and XSwap, aims to connect global payments to the decentralized web.
The process is straightforward. Users initiate a crypto purchase via Swapper Finance or any platform that integrates its widget. Shift4 Payments processes the card transaction and submits it to Mastercard for approval, ensuring regulatory compliance and security. Zerohash acts as the intermediary, providing the token on-chain and enabling fiat-to-crypto conversion infrastructure. Chainlink validates and verifies the purchase request securely via its decentralized oracle network. Once verified, Chainlink triggers the trade on a DEX such as Uniswap, allowing users to buy crypto assets like Bitcoin, Ethereum, or stablecoins directly on-chain without needing to go through centralized exchanges or complex wallet setups.
This cooperation marks the first large-scale direct-to-DEX payment solution backed by a major global payment provider, effectively bridging traditional finance (TradFi) with decentralized finance (DeFi). It simplifies the user experience, reduces barriers to entry for crypto adoption, and enhances transaction transparency and security by leveraging Chainlink's real-time data feeds and Mastercard's payment rails.
Moreover, the new system removes frictions in onboarding into the crypto world, such as signing up with centralized exchanges, waiting for KYC verification, transferring assets to self-custody wallets, and navigating complex DEX interfaces. The crypto is delivered directly to the user's wallet without the need for a centralized crypto exchange.
Zerohash handles compliance, custody, and fiat-to-crypto conversion for regulated and licensed entities. Swapper Finance utilizes XSwap for liquidity in final asset swaps. Chainlink serves as the decentralized data layer, verifying that each transaction is executed as intended and linking fiat payment metadata with on-chain smart contract logic.
In conclusion, this partnership represents a significant milestone in the ongoing convergence of decentralized finance (DeFi) and traditional financial infrastructure. Mastercard is building the tracks for regulated, stablecoin-powered payments globally, making cryptocurrencies more accessible and user-friendly for its vast cardholder base. The new era of on-chain card payments has arrived, marking a significant milestone in the convergence of TradFi and DeFi.
- Mastercard's partner, Chainlink, will securely validate and verify purchase requests for cryptocurrencies on decentralized exchanges (DEXs) through its decentralized oracle network.
- The collaboration, featuring partners like zerohash, Shift4 Payments, Swapper Finance, and XSwap, aims to connect Mastercard's global payments to the decentralized web.
- Users can initiate a crypto purchase through Swapper Finance or any platform that integrates its widget, and the crypto will be delivered directly to their wallets.
- Shift4 Payments processes the card transaction and ensures regulatory compliance and security, while Zerohash provides the token on-chain and enables the fiat-to-crypto conversion infrastructure.
- The new system eliminates the need for users to sign up with centralized exchanges, undergo KYC verification, or navigate complex DEX interfaces.
- Chainlink's real-time data feeds will enhance transaction transparency and security in this integration, linking fiat payment metadata with on-chain smart contract logic.
- Swapper Finance utilizes XSwap for liquidity in final asset swaps, while Zerohash handles compliance, custody, and fiat-to-crypto conversion for regulated and licensed entities.
- This partnership signifies a significant milestone in the ongoing convergence of decentralized finance (DeFi) and traditional financial infrastructure, making cryptocurrencies more accessible and user-friendly.
- The partnership between Mastercard and Chainlink is predicted to drive the growth of stablecoins, with experts forecasting that the total market cap of stablecoins will surpass $150 billion by 2025.
- In the new era of on-chain card payments, Mastercard is building the tracks for regulated, stablecoin-powered payments globally, effectively bridging traditional finance (TradFi) with decentralized finance (DeFi).
