Payments technology firm Marqeta and cryptocurrency exchange Coinbase announced on Friday an expansion of their six-year partnership to let businesses issue payment cards funded by customers’ stablecoin balances.
Under the arrangement, Coinbase will custody stablecoins and manage conversions between digital and traditional currencies. Marqeta will handle card issuance and payment processing, while Coinbase’s Base blockchain provides onchain settlement infrastructure.
The offering targets Marqeta’s business customers, including both crypto-native and traditional companies. Cardholders will be able to spend stablecoins at the millions of merchants that accept cards, and businesses can fund card programs around the clock.
Alec Lovett, Head of Infrastructure Products at Coinbase, said: “Coinbase is enabling businesses to move money with the speed and efficiency they require. Our collaboration with Marqeta will combine our stablecoin payment rails with their powerful issuing and processing capabilities to deliver real-time global transactions that meet the needs of modern consumers and businesses.”
The companies first worked together on Coinbase’s own card, with Marqeta named as the processor powering Coinbase’s U.S. debit card in October 2020. That product allowed customers to spend crypto, including USDC, and earn crypto rewards. The new release did not specify fees, a rollout date, or which stablecoins would be supported initially, though the companies said international expansion is planned as a next step.
