Mastercard is set to enhance its crypto offerings by collaborating with Chainlink, allowing cardholders to buy cryptocurrency directly on-chain through a straightforward fiat-to-crypto conversion. This initiative aims to make purchasing digital assets more user-friendly, especially for those who have previously found the crypto landscape daunting due to its complexity.
The partnership, announced on June 24, involves several technology and service partners including zerohash, Shift4 Payments, and the decentralised exchange, XSwap. Chainlink’s robust interoperability infrastructure will combine with Mastercard’s extensive payment network, broadening crypto access for more than three billion cardholders globally.
Sergey Nazarov, co-founder of Chainlink, expressed his enthusiasm for this collaboration, highlighting its potential to bridge the gap between traditional finance and the burgeoning world of blockchain technology. On their official social media, Chainlink described this partnership as a significant advancement toward the mainstream adoption of Web3 technologies.
In detail, the collaborative effort includes various roles for different partners in facilitating the fiat-to-crypto process:
- zerohash: Offers core compliance, custody, and transaction infrastructure.
- Shift4 Payments: Ensures smooth card processing for transactions.
- SwapperFinance: Serves as the platform for users to purchase crypto assets.
- XSwap: Utilised for executing on-chain swaps powered by Chainlink technology.
Following the announcement, the market reacted positively to the news, with Chainlink’s native token, LINK, experiencing a 16% surge on the same day, now valued at approximately AU$20.62. This spike can also be correlated to a broader rally in the cryptocurrency market.
This collaboration is part of a broader trend, as Mastercard has been actively pursuing advancements in the crypto realm. In April, Mastercard announced updates to its Multi-token Network and Crypto Credential System, aiming to simplify the cryptocurrency purchase process, akin to the user experience offered by popular payments apps like Venmo. Just last month, the company forged a partnership with Moonpay, enabling cryptocurrency wallet users to create virtual Mastercards that permit spending stablecoins at any of the over 150 million merchants in Mastercard’s extensive network.
In conclusion, the alliance between Mastercard and Chainlink is poised to enhance cryptocurrency accessibility while fostering the integration of traditional payment methods with blockchain technology, a significant step forward in the ever-evolving digital asset landscape.
