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The card company has positioned itself as a bridge between its global network and chain payment systems.
With technology designed to leave traditional finance aside, credit card payment networks are making significant investments in stablecoins.
Mastercard’s announced acquisition of BVNK, a stablecoin infrastructure provider, could usher in a new era of digital expansion for the legacy payments company. According to Mastercard, the final price tag of the deal could reach $1.8 billion by the time it closes at the end of 2026.
During the company’s first quarter earnings call, Mastercard CEO Michael Miebach cited BVNK’s ecosystem of stablecoin stakeholders and financial providers as a key driver of the acquisition, with a portfolio of hard-to-find licenses making the deal attractive. Once the sale is complete, Mastercard will integrate BVNK’s tools to handle cross-border digital payments, merchant transactions, and multi-asset trading directly within its system.
Meanwhile, Visa’s rival continues to expand its stablecoin-linked Visa card program.
“We now have more than 160 stablecoin card programs around the world with key partners, such as Rain, Reap, and Bridge,” said Visa CEO Ryan McInerney during the company’s first quarter call in January. “And our billing volume continues to grow at a very strong rate, up nearly 200% year-over-year in the second quarter.”
Credit Card Cannibalization
This investment raises the question of whether card networks are at risk of making credit card sales by investing in disruptive payment channels such as stablecoins.
“Card networks and major card-issuing banks take a long-term view of increasing market share and profitability while maintaining ‘options’ to integrate new and disruptive technologies into their existing platforms and customer base,” said Todd H. Baker, senior fellow at the Richman Center for Business, Law and Public Policy at Columbia University’s Business and Law Schools. “They want to be ready when the customers want.”
Aaron McPherson, principal at senior consulting firm AFM Consulting, also played down the threat of cannibalism. “The card networks still control the merchant relationship and will take action to ensure that there is no inherent advantage to using stablecoins over traditional rails.”
McPherson also shares the idea of card companies that stablecoins are a form of domestic payment. “Even if consumers are using stablecoins directly, the majority of transactions happen with linked debit cards, which ensures that Visa and Mastercards still collect their fees.”
Crossing the Stablecoin Bridge
Card networks recognize stablecoins that complement their core offerings. Credit cards are easy to use, widely accepted around the world, and integrated into the transaction flow, McInerney said. But of the $13 billion in transactions settled between and among Visa’s nearly 14,500 financial institution partners, almost all were settled in fiat currency Monday through Friday.
On the other hand, those who use stablecoins can complete transactions seven days a week, which provides great benefits for liquidity and efficiency, he added.
Card companies position themselves as a bridge layer between their global network infrastructure and on-chain payment systems such as stablecoin. By making this investment, Mastercard was able to “build a whole set of new services and additional opportunities,” Miebach said during the earnings call.
Visa is also taking a Visa-as-a-Service approach and is working with stablecoins stack at different levels. These integration solutions have the same economics as the company’s current products, McInerney said.
These strategies have paid off for the card companies. Visa has an annual run rate of $7 billion in stablecoin payment volume, which is up more than 50% from last quarter.
