Chainlink has partnered with Mastercard to allow cardholders worldwide to purchase cryptocurrencies directly on-chain using debit or credit cards. This collaboration aims to simplify and secure access to digital assets, eliminating intermediaries like traditional exchanges or wallet apps.
How the On-Chain Conversion System Works
The new system achieves fully on-chain fiat-to-crypto conversion by integrating multiple blockchain and payment technologies:
- Compliance: Zerohash provides KYC and custodial support.
- Payments: Shift4 handles card transaction processing.
- Execution: Swapper Finance routes orders via XSwap (a decentralized exchange).
- Liquidity: Uniswap supplies real-time pricing and market depth.
👉 Discover how blockchain is reshaping finance
Raj Dhamodharan, Mastercard’s EVP of Blockchain and Digital Assets, stated:
“We’re bridging traditional finance with digital assets through secure, innovative solutions—making blockchain commerce as intuitive as using a credit card.”
Key Advantages Over Traditional Methods
- No Exchange Dependency: Assets move directly from fiat to self-custodied wallets.
- Regulatory Compliance: Built-in KYC ensures adherence to financial laws.
- Speed: Transactions settle on-chain without pre-funding accounts.
| Partner | Role |
|---|---|
| Chainlink | Oracle networks for real-time data |
| Zerohash | Identity verification and custody |
| Uniswap | Liquidity provisioning |
Broader Implications for Crypto Adoption
This system targets Mastercard’s 300M+ cardholders, lowering barriers for mainstream users unfamiliar with crypto exchanges. Sergey Nazarov, Chainlink co-founder, emphasized:
“Layered collaborations like this normalize blockchain-based finance, mirroring everyday card usage.”
Mastercard’s Expanding Crypto Ecosystem
- OKX Card: Collaborates with OKX for Web3-enabled spending.
- Stablecoin Settlements: Partners with Circle, Nuvei, and Paxos to enable USDC/USDP transactions for merchants.
👉 Explore seamless crypto payments
Frequently Asked Questions (FAQs)
Q: How does this differ from Visa/Mastercard’s existing crypto cards?
A: Traditional cards convert crypto to fiat at point-of-sale. Here, fiat converts to crypto on-chain, with assets sent directly to wallets.
Q: Is this service available globally?
A: Initially rolling out in compliant jurisdictions, with phased expansions.
Q: What cryptocurrencies are supported?
A: Details pending, but expect major stablecoins and blue-chip tokens via Uniswap liquidity.
Q: Are fees lower than using exchanges?
A: Yes—by cutting intermediaries, costs reduce significantly.
Q: How does Mastercard ensure security?
A: Zerohash’s custodial tech and Chainlink’s tamper-proof oracles safeguard transactions.
Q: Can merchants accept crypto via this system?
A: Not directly, but stablecoin settlements (e.g., USDC) are being tested with partners like Circle.