Coinbase to power Marqeta’s stablecoin-backed card programs

As card issuers connect digital asset balances to existing payment networks, Marqeta said on Oct. 16 that Coinbase will provide infrastructure for stablecoin-backed cards offered by Marqeta’s enterprise customers. The companies say the arrangement will let businesses turn stablecoin balances into card spending.

The collaboration assigns custody and conversion to Coinbase while keeping card issuance and processing with Marqeta.

According to Marqeta’s announcement, Coinbase will hold customers’ stablecoin balances and manage conversion between digital assets and fiat. Base, Coinbase’s blockchain, will provide on-chain settlement infrastructure. Marqeta will issue and process the cards and manage the associated bank and card network relationships.

How will stablecoin balances fund card purchases?

The companies say businesses will be able to issue cards backed by stablecoin balances and fund their programs 24 hours a day, seven days a week. Cardholders will be able to spend against those balances at millions of merchants globally that accept cards. The announcement does not specify which stablecoins will be supported, how conversion will be priced, or when the programs will become available.

In the planned arrangement, the customer balance is held in stablecoins, while Coinbase manages conversion between digital assets and fiat. Base supplies the on-chain settlement layer; Marqeta supplies the card program and payment processing. The announcement describes the service as available to both crypto-native and non-crypto businesses.

What does each company contribute?

The partnership expands an existing relationship: Marqeta already issues crypto-backed cards for Coinbase, according to the announcement. The new collaboration is aimed at stablecoin-backed programs for Marqeta’s enterprise customers, adding Coinbase’s custody, conversion and blockchain settlement services to Marqeta’s issuing platform.

Alec Lovett, Coinbase’s head of infrastructure products, said the companies would combine Coinbase’s stablecoin payment rails with Marqeta’s issuing and processing capabilities. Marqeta chief strategy officer Anthony Peculic said the expanded relationship would support the company’s stablecoin-backed card offering. The announcement presents the arrangements and expected benefits as part of a planned collaboration; it does not name participating customer businesses or provide program launch dates.

Sources

• Marqeta’s announcement — investors.marqeta.com