Coinbase is expanding its payments business through a partnership with Marqeta that will allow businesses to offer cards funded by stablecoin holdings. The collaboration combines Coinbase’s digital asset infrastructure with Marqeta’s card issuing and payment processing technology. Consequently, customers could spend stablecoins at millions of merchants while businesses manage funding around the clock.
Coinbase to Handle Custody and Currency Conversion
Under the expanded agreement, Coinbase will hold customers’ stablecoins and convert digital assets into traditional currencies when needed. Meanwhile, Marqeta will manage card issuance and payment processing for participating businesses.
Additionally, Coinbase’s Base blockchain will support onchain settlement, helping the companies connect digital assets with existing payment systems. The service targets Marqeta’s business customers across both cryptocurrency and traditional financial markets.
Significantly, the arrangement could help businesses offer crypto-linked spending without building their own custody and payment infrastructure. However, the companies have not disclosed supported stablecoins, transaction fees, or a launch date.
Existing Partnership Supports Expansion
The agreement builds on a six-year relationship between Coinbase and Marqeta. In October 2020, Coinbase selected Marqeta to process its U.S. crypto debit card.
That card allowed customers to spend cryptocurrencies, including USDC, and earn crypto rewards. Moreover, the latest collaboration extends their relationship toward payment products that businesses can offer their own customers.
The firms want to make stablecoins accessible to more people and merge them with familiar card transactions, which could increase the use of cryptocurrencies in daily life. Adoption will, however, rely on availability, costs and supported assets of the service.
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