The rise of blockchain technology and digital currencies once sparked fears of disruption for traditional financial giants. Yet instead of resisting change, Visa and Mastercard are proactively integrating blockchain into their core operations — not as a threat, but as a transformative opportunity.
With a combined global market share exceeding 70%, these payment leaders recognize that innovation is essential to staying ahead. Rather than being sidelined by decentralized finance (DeFi), stablecoins, or Central Bank Digital Currencies (CBDCs), they’re positioning themselves at the forefront of the digital asset revolution.
This article explores how Visa and Mastercard are leveraging blockchain, cryptocurrency, cross-border payments, CBDCs, stablecoins, and Web3 to future-proof their networks and remain central to the next era of global finance.
Visa’s Strategic Moves in Blockchain
Cuy Sheffield, Head of Crypto at Visa, has made it clear: financial institutions must adapt or risk losing customers to more agile competitors.
“We imagine a future where Visa’s network of networks involves more than just multiple currencies and bank settlement rails, but also multiple blockchain networks, stablecoins, CBDCs, and tokenized deposits.”
To realize this vision, Visa has adopted a blockchain-agnostic strategy — testing various platforms to identify which best enhance speed, security, and user experience.
Cross-Border Payments via Ethereum and Solana
Since 2021, Visa has partnered with Circle, the issuer of the USDC stablecoin, to pilot cross-border settlements using the Ethereum blockchain. The system enables Visa to receive USDC payments from partners like Crypto.com to settle obligations for its credit card programs — starting in Australia and expanding globally.
In September 2023, Visa extended its capabilities to the Solana blockchain, collaborating with merchant acquirers Worldpay and Nuvei. By sending USDC directly over Solana, Visa accelerates settlement times while reducing transaction costs — a major advantage for merchants in blockchain-heavy sectors like NFT marketplaces, gaming studios, and crypto on-ramps.
👉 Discover how fast blockchain settlements can transform your financial operations.
This move made Visa one of the first major payment companies to use Solana for live-scale settlements — signaling a shift toward multi-chain infrastructure.
Account Abstraction: Simplifying User Experience
One major barrier to mainstream blockchain adoption is the need for users to hold native tokens (like ETH) to pay gas fees. To solve this, Visa experimented with account abstraction on Ethereum’s Goerli testnet in early 2023.
This innovation allows third parties — such as payment processors — to sponsor transaction fees. Users can pay in any cryptocurrency, and smart contracts automatically convert funds into the required gas tokens. The result? A smoother, more intuitive experience that removes technical friction for everyday consumers.
Supporting CBDC Pilots Worldwide
Visa is actively involved in Central Bank Digital Currency initiatives across multiple countries:
- Partnered with the Hong Kong Monetary Authority (HKMA) in its e-HKD pilot to explore digital settlement of tokenized deposits.
- Collaborated with the Central Bank of Brazil on a blockchain hub prototype enabling instant fund transfers for small businesses.
- Enabled the first transactions using the Digital Tenge in Kazakhstan via Visa-powered bank cards.
These trials underscore Visa’s role not just as a payment processor, but as a bridge between traditional banking systems and emerging digital currency ecosystems.
Crypto-Linked Cards: Bridging Digital and Fiat Economies
Visa works with over 70 crypto platforms, including Crypto.com, Kucoin, and Bitpanda, to issue cryptocurrency-linked debit and credit cards. These cards allow users to seamlessly convert crypto into fiat at the point of sale.
Notably, Fold, a Bitcoin rewards company, expanded its partnership with Visa in 2023 to make it the exclusive global network partner across North America, Europe, Latin America, and the Caribbean. Since launching its first Visa co-branded card in 2020, Fold has processed over $1 billion in transactions.
Securing Innovation Through Patents
Visa is protecting its digital future through intellectual property. As of 2022, it held 112 blockchain-related patents in the U.S. alone — covering everything from digital currency creation to NFT trademarks and wallet software.
These filings reflect a long-term commitment to innovation, ensuring Visa remains competitive in an evolving technological landscape.
Mastercard’s Blockchain Vision: Security, Interoperability, and Choice
Mastercard’s approach centers on providing “more choice in how they move digital value.” Its strategy emphasizes security, compliance, and seamless integration between traditional finance and Web3.
Multi-Token Network (MTN): A Blockchain App Store
In 2023, Mastercard launched the Multi-Token Network (MTN) — a blockchain-powered platform designed to make digital asset transactions secure, scalable, and interoperable.
Think of MTN as a “blockchain app store” where financial institutions, fintechs, and central banks can develop and test live applications. Initial trials began in the UK during Q3 2023, with plans for global expansion.
The network supports multiple asset types:
- Tokenized bank deposits
- Stablecoins
- CBDCs
Early partners include Lirium, Bit2Me, Mercado Bitcoin, and Uphold — working together on cross-border transfers between the U.S., Latin America, and the Caribbean.
👉 See how interoperable blockchain networks are reshaping global payments.
Mastercard Crypto Credential: Building Trust in Web3
Launched in April 2023, Crypto Credential provides standardized verification across Web3 applications. It ensures compliance with anti-money laundering (AML) regulations and enables trusted interactions on public blockchains.
Public networks like Aptos, Avalanche, Polygon, and Solana have integrated Crypto Credential into their developer ecosystems — helping apps verify identities without compromising decentralization.
Additionally, Mastercard partnered with MoonPay in October 2023 to explore Web3 tools for consumer loyalty programs. MoonPay uses Crypto Credential to boost trust and efficiency while integrating Mastercard technologies like Click to Pay into its stack.
CBDC Collaboration Across Continents
Mastercard’s CBDC Partner Program brings together leading innovators such as:
- Ripple
- Consensys
- Fireblocks
- Idemia
- Giesecke+Devrient
The company has participated in CBDC pilots in:
- Australia: Demonstrated interoperable CBDCs that can be "wrapped" onto different blockchains for Web3 commerce.
- Brazil: Worked on instant transfer solutions for small businesses.
- Hong Kong: Joined HKMA’s e-HKD program.
- Kazakhstan: Enabled card-based transactions using the Digital Tenge.
In Australia, Mastercard worked with Cuscal and Mintable to demonstrate how a wrapped CBDC could be used to purchase an NFT on Ethereum — all within a secure, regulated environment using MTN components.
Fraud Prevention: A Core Priority
Unlike some players focused solely on innovation, Mastercard prioritizes security and compliance.
In November 2023, it partnered with Feedzai, a regulatory tech platform, to combat crypto-related fraud using artificial intelligence (AI). Feedzai’s RiskOps platform integrates directly with Mastercard’s CipherTrace Armada, which monitors transactions across 6,000+ crypto exchanges for suspicious activity.
This builds on Mastercard’s 2021 acquisition of CipherTrace, a Web3 analytics firm that helps institutions assess crypto risks and meet regulatory requirements.
Mastercard leads in patent filings too — securing 153 blockchain-related patents, including:
- Blockchain-based payment card verification
- APIs for crypto service providers to exchange consumer data securely
Frequently Asked Questions
Q: Are Visa and Mastercard replacing traditional payments with blockchain?
A: No. They’re enhancing existing systems by integrating blockchain for faster settlements, better security, and support for digital assets — not replacing fiat infrastructure.
Q: Can I use cryptocurrency directly with Visa or Mastercard?
A: Not directly. However, you can use crypto-linked debit cards issued through partner platforms (e.g., Crypto.com) that instantly convert crypto to fiat at checkout.
Q: What are stablecoins, and why do Visa and Mastercard use them?
A: Stablecoins like USDC are digital currencies pegged to fiat (e.g., USD). They enable fast, low-cost cross-border transfers — ideal for real-time settlement on blockchains.
Q: How do CBDCs work with Visa and Mastercard?
A: They act as intermediaries — enabling banks and merchants to accept CBDC payments via familiar card networks while ensuring compliance and interoperability.
Q: Is my data safe when using crypto cards?
A: Yes. Both companies enforce strict AML and KYC protocols. Mastercard’s Crypto Credential adds another layer of identity verification across Web3 apps.
Q: Will blockchain make credit cards obsolete?
A: Unlikely. Instead, blockchain enhances card networks by speeding up back-end processes, reducing costs, and enabling new features like tokenized rewards.
The Bottom Line
Visa and Mastercard aren’t just adapting to blockchain — they’re helping shape it. Through strategic partnerships, cutting-edge platforms like MTN, support for CBDCs, and robust security frameworks, both companies are ensuring they remain central to the future of finance.
They’re not betting against traditional systems; they’re building bridges between old and new — making global transactions faster, safer, and more inclusive.
As blockchain adoption grows, one thing is clear: the future of money isn’t about replacing legacy systems, but evolving them. And Visa and Mastercard are leading that evolution.
👉 Stay ahead of the financial revolution — see what’s next in digital payments.