Coinbase, Marqeta to Launch Stablecoin Card Service for Businesses
Coinbase is launching a stablecoin-based card service with payments technology company Marqeta for business clients. The service will allow companies to use their stablecoin holdings to fund card payments.The Block reported on Oct. 16 that the companies are expanding their existing partnership to offer card issuance services to Marqeta’s business customers. The service will be available to both crypto firms and non-crypto companies.Coinbase will handle stablecoin custody and conversion into fiat currency, while Marqeta will manage card issuance and payment processing. On-chain settlement will run on Base, Coinbase’s Ethereum layer-2 network.Companies will be able to load funds onto card programs 24/7 regardless of bank operating hours. Cardholders will be able to use their stablecoin balances to pay at millions of merchants that already accept traditional card payments.Alek Lovett, Coinbase’s head of infrastructure products, said combining stablecoin payments infrastructure with Marqeta’s issuing and processing capabilities would enable real-time global transactions tailored to the needs of modern consumers and businesses.The companies have worked together since the launch of the Coinbase debit card in the U.S. in October 2020. That card allowed users to spend cryptocurrencies, including Circle’s dollar-backed stablecoin USDC, and earn crypto rewards. The companies did not disclose a launch date, fees or a list of supported stablecoins for the new service.