TradFi giants are vigorously laying out their plans in the encryption field, Mastercard has opened up the on-chain deposit channel.

Traditional financial institutions are accelerating their layout in the cryptocurrency field. Recently, payment giant Mastercard announced that it will provide on-chain encryption cryptocurrency purchase services, further promoting the mainstreaming process of crypto payments.

In recent years, Mastercard has been deepening its encryption strategy layout, moving from experimental exploration to practical implementation, making it a key part of its global financial landscape.

Mastercard Achieves On-Chain Cryptocurrency Purchase

Recently, Mastercard reached a strategic partnership with Chainlink, allowing over 3 billion cardholders worldwide to purchase cryptocurrency directly on the blockchain using their credit cards. This not only represents another significant move by Mastercard in the field of encryption but also achieves a deep integration of the TradFi network with core components of DeFi in the fiat deposit path, potentially opening new channels for the large-scale adoption of on-chain finance.

In this service system, users do not need to register a centralized exchange account or perform complex on-chain bridging processes. They only need to initiate a transaction request through a DEX that integrates this feature to purchase crypto assets using a Mastercard. The entire process involves multiple parties collaborating: a certain DEX serves as the user front-end entry point, supporting the initiation of credit card payment instructions; traditional payment gateway service providers offer seamless card payment processing, verifying and handling the user's fiat currency payment; cryptocurrency and stablecoin infrastructure providers are responsible for converting the user's fiat currency into cryptocurrency, ensuring compliance, providing liquidity, and offering on-chain services; decentralized oracle networks and interoperability standards ensure the security of on-chain transactions and the reliability of data.

Ultimately, the encryption assets will be directly sent to the user's on-chain wallet address via smart contracts, with the entire process not requiring knowledge of trading pairs, Gas fees, or slippage parameters, nor the need to switch to a centralized trading platform.

This cooperation is no longer about using on-chain assets for real-world consumption, but rather directly opening a channel for fiat deposit to on-chain assets, allowing non-encryption native users to simply swipe their cards like shopping on e-commerce platforms to obtain on-chain assets, without the need to understand any DeFi concepts, and with compliance and transparency. This not only breaks the long-standing barriers of deposit difficulties for DeFi users, but also provides a compliant, safe, and controllable on-chain channel for the TradFi system.

The Executive Vice President of Blockchain and Digital Assets at Mastercard stated that people want to easily connect to the digital asset ecosystem. By collaborating with partners, they are unlocking a secure and innovative way to transform on-chain commerce and drive broader adoption of encryption assets.

MasterCard's encryption strategy focuses on three key areas

The head of encryption and blockchain business at Mastercard pointed out that the key issue hindering cryptocurrencies from going mainstream is the difficulty for users to identify and transfer funds to each other in familiar ways. Mastercard's goal is to become a connector between TradFi and on-chain networks, stimulating new business models while ensuring compliance.

According to a report submitted by Mastercard to the US SEC earlier this year, the company has made significant progress in achieving its goal of an "innovative payment ecosystem," including transaction tokenization, creating solutions to unlock blockchain-based business models, and simplifying access to digital assets. Mastercard recognizes that digital currencies have the potential to disrupt TradFi markets and may directly challenge its existing products.

In the process of laying out encryption payments, stablecoins are becoming the strategic hub of Mastercard's on-chain settlement. Mastercard has joined a stablecoin alliance initiated by multiple institutions, supporting various stablecoins and integrating them into the payment network. In addition, Mastercard has also launched a comprehensive stablecoin payment solution that allows merchants to directly use stablecoins for transaction settlement.

In addition to stablecoins, Mastercard is also vigorously promoting the construction of asset tokenization. The company is developing a multi-token network aimed at replicating its traditional payment network to provide digital asset trading infrastructure for consumers, merchants, and financial institutions. The system will integrate on-chain and off-chain asset flows, ensuring compliance and optimizing the user experience.

MasterCard has set its strategic focus for 2025 on three main areas: on-chain/off-chain deposit and withdrawal, promoting Crypto Credentials, and the application of stablecoins. Currently, the company supports financial institutions in using stablecoins for transaction settlements and plans to announce more partnerships and application scenarios this year to continue advancing the integration of encryption.

In the accelerated process of integration between TradFi institutions and the encryption sector, Mastercard is laying out its plans in multiple areas to build its own crypto business landscape.