Coinbase to power stablecoin cards for Marqeta customers
Coinbase will help Marqeta customers turn stablecoin balances into card spending, with Base settling payments and Marqeta managing card issuance and processing.
The Chain Times Desk2 min read
Marqeta and Coinbase announced a collaboration on Oct. 16 to let Marqeta’s business customers offer cards that spend from stablecoin balances. The companies say this would connect digital-asset balances to everyday purchases at card-accepting merchants. Marqeta’s announcement says the service is aimed at crypto and non-crypto firms.
What will Coinbase and Marqeta each handle?
Coinbase will hold the stablecoins and convert them to fiat currency, which traditional card payments use. Base, Coinbase’s blockchain, will provide the settlement infrastructure. Marqeta will issue the cards, process payments and manage relationships with banks and card networks, according to the announcement.
Stablecoins are digital tokens designed to keep a steady value, often by tracking a currency such as the US dollar. Under the planned setup, businesses could fund card programs around the clock, while cardholders could spend against a stablecoin balance at merchants that accept cards globally.
Is this a new relationship between the companies?
No. Marqeta says it already issues crypto-backed cards for Coinbase. The new collaboration expands that relationship by combining Coinbase’s custody and conversion services with Marqeta’s card issuing and processing platform.
The companies describe the arrangement as a way for businesses to offer card payments funded by stablecoins. That means a customer could pay with a card while the program draws on a stablecoin balance, instead of requiring a merchant to accept crypto directly.
When will customers be able to use the cards?
The announcement does not give a launch date or disclose financial terms. It describes what businesses will be able to do through the collaboration, but does not say when the service will become available. Investing.com’s report also noted that the companies had not provided a timeline or financial details.
For now, the announcement sets out the planned division of work: Coinbase handles stablecoin custody, conversion and Base settlement, while Marqeta manages the card and its payment connections. The companies have not named customers for the expanded service.
Sources and documents
- Marqeta’s announcement — investors.marqeta.com
- Investing.com’s report — investing.com