Mastercard expands on-chain settlement in bet on stablecoins and always-on finance

Mastercard is expanding its settlement network to support regulated stablecoins, a move that could help bring blockchain-based payments deeper into the plumbing of the global financial system.

The company said Wednesday it plans to offer issuers and acquirers additional settlement options, including intraday, weekend and holiday settlement as well as on-chain settlement using regulated stablecoins. The new capabilities will operate alongside existing fiat settlement processes and are designed to give financial institutions more flexibility in managing liquidity.

Mastercard will initially support settlement using Circle's USDC, Paxos-issued PYUSD, USDG and USDP, Ripple's RLUSD and SoFiUSD. The stablecoins will be available across blockchain networks including Ethereum (ETH), Solana (SOL), Polygon (POL), Base, Arbitrum (ARB) and XRPL.

While the announcement may appear technical, it reflects a broader shift underway in financial markets. Traditionally, card transactions are authorized instantly, but settlement between banks and payment providers often occurs later in batches and is limited by banking hours. Mastercard's new framework moves the network closer to an always-on model where value can be transferred and settled around the clock.

"The next phase of stablecoin adoption is about real-world utility, especially in settlement, where timing and liquidity matter most," Raj Dhamodharan, Mastercard's executive vice president of blockchain and digital assets, said in a statement.

The significance extends beyond payments. Stablecoins have long been used primarily for crypto trading, but banks, payment firms and asset managers are increasingly viewing them as settlement assets that can move money instantly across borders and outside traditional banking schedules.

The rollout comes as competition intensifies among payment networks and financial institutions seeking to modernize settlement infrastructure. Circle, Ripple, Paxos and other stablecoin issuers have increasingly positioned their products as alternatives to legacy correspondent banking rails for cross-border payments and treasury operations.

Several financial institutions, including Cross River, Lead Bank, CBW Bank, ARQ and Nuvei, are expected to be among the first participants supporting stablecoin settlement in the U.S. and Latin America.