Coinbase to power stablecoin cards for Marqeta customers

Coinbase will provide custody, fiat conversion and settlement on Base for stablecoin-backed cards Marqeta plans to offer its enterprise customers, the companies announced Oct. 16. The arrangement adds stablecoin card programs to a relationship in which Marqeta already issues crypto-backed cards for Coinbase, according to Marqeta’s announcement.

What will each company handle?

Coinbase will hold stablecoin balances and manage conversion between digital assets and fiat, while Base will provide the on-chain settlement infrastructure. Marqeta will issue the cards, process payments and manage relationships with banks and card networks.

The companies said businesses will be able to fund card programs around the clock. Cardholders will be able to spend from stablecoin balances at merchants that accept cards globally. The announcement did not identify which stablecoins or networks beyond Base will be supported.

How does the card turn stablecoins into spending?

The setup links a customer’s stablecoin balance to a payment card: Coinbase handles custody and conversion, and Marqeta routes the card payment through its issuing and processing system. The companies said Base will support fast, low-cost settlement, but did not disclose transaction fees or a settlement schedule.

Marqeta said the offering is intended for both crypto-native and non-crypto firms. The release did not name participating businesses, provide expected card volumes or disclose commercial terms.

When will the cards launch?

Neither company gave a rollout date in the announcement. The next step is for businesses to build and launch programs using the combined infrastructure; Marqeta and Coinbase did not state when the first cards will be available.

References

• Marqeta’s announcement — investors.marqeta.com