TradFi giants accelerate their layout in the encryption ecosystem, Mastercard launches on-chain asset purchase service

Recently, TradFi institutions are accelerating their entry into the encryption field. On June 24, leading payment company Mastercard announced that it will provide on-chain cryptocurrency purchase services, further promoting the popularization of encryption payments.

In fact, in recent years, Mastercard has been deepening its encryption strategy and has moved from experimental exploration to the actual implementation phase, becoming a key part of its global financial landscape.

Mastercard opens on-chain deposit channel, allowing card payments to purchase encryption.

Recently, Chainlink and Mastercard officially announced a strategic partnership that will allow over 3 billion cardholders worldwide to purchase cryptocurrency directly on the blockchain using their credit cards. This is not only another significant move by Mastercard in the encryption field, but it also achieves a deep integration of the TradFi network with the core components of DeFi on the fiat currency deposit path, potentially opening up a new avenue for the large-scale adoption of on-chain finance.

According to the introduction, in this service system, users do not need to register a centralized exchange account or go through complex on-chain bridging processes; they can simply initiate a transaction request through a DEX that has integrated this feature to purchase encryption assets using a Mastercard.

In this process, DEX serves as the user front-end entry, supporting the initiation of credit card payment instructions; traditional payment gateway service providers offer seamless card payment processing, verifying and handling users' fiat currency payments; encryption and stablecoin infrastructure providers are responsible for converting users' fiat currency into encryption, while ensuring compliance, providing liquidity, and on-chain services; Chainlink's decentralized oracle network and interoperability standards ensure the security of on-chain transactions and the reliability of data, while its ecological DEX utilizes various protocols to obtain liquidity and complete on-chain exchanges of encryption.

Finally, the encryption assets will be sent directly to the user's on-chain wallet address through smart contracts, without the need to understand trading pairs, Gas fees, or slippage parameters, and without switching to centralized trading platforms.

This model no longer uses on-chain assets for real-world consumption, but rather directly opens a channel for fiat currency deposits into on-chain assets, allowing non-encryption native users to simply swipe their cards as if shopping on an e-commerce platform to obtain on-chain assets, without needing to understand any DeFi concepts, while being compliant and transparent. This not only breaks the long-standing barriers for DeFi users to deposit funds but also provides a compliant, secure, and controllable on-chain channel for the traditional financial system.

The Executive Vice President of Blockchain and Digital Assets at Mastercard stated, "People want to easily connect to the digital asset ecosystem, and vice versa. This is precisely why we continue to leverage our global payment network and mature experience to bridge the gap between on-chain commerce and off-chain transactions. By partnering with Chainlink, we are unlocking a secure and innovative way to fundamentally transform on-chain commerce and drive broader adoption of encryption assets."

The co-founder of Chainlink also pointed out, "This is a typical case of the fusion between TradFi and decentralized finance. I am very excited to be able to drive this key connection from traditional payment networks to on-chain DEX trading environments. This is a complex and multi-layered collaboration, and I am deeply pleased to be able to facilitate it with the power of the community."

Mastercard Focuses on Three Key Areas to Accelerate Encryption Strategy Implementation

The head of encryption and blockchain business at Mastercard recently pointed out that the company has moved from the experimental stage to providing actual encryption solutions. The company is deepening its layout in the encryption field, gradually integrating encrypted assets, stablecoins, and tokenized assets into the daily payment experience.

According to a report submitted by Mastercard to the SEC in February 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. At the same time, in this document, Mastercard clearly states that digital currencies have the potential to disrupt the TradFi market and may directly challenge its existing products.

Before the reality of buying coins with a card, MasterCard has been promoting the commercialization of encryption payments, collaborating with multiple encryption companies to launch co-branded encryption debit cards, allowing cardholders to directly use cryptocurrency for consumption, with automatic conversion to fiat currency in the background.

In the process of laying out encryption payments, stablecoins are also becoming the strategic hub for Mastercard's on-chain settlement. Mastercard has joined a stablecoin alliance initiated by multiple institutions, supporting various stablecoins and integrating them into its cross-border payment network. At the same time, the company has also partnered with several encryption payment companies to launch new stablecoin payment cards and comprehensive stablecoin payment solutions.

In addition to stablecoins, Mastercard is also actively 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. Mastercard has collaborated with multiple financial institutions to explore scenarios such as cross-border payments and carbon credit tokenization, and has applied for over 250 blockchain-related patents since 2015.

The head of encryption and blockchain business at Mastercard revealed that the company's strategic focus for 2025 is set on three major areas: on-chain/off-chain deposits and withdrawals, promotion of encryption vouchers, and application of stablecoins. Currently, Mastercard supports financial institutions in using stablecoins for transaction settlement and plans to announce more partnerships and application scenarios this year to continue advancing the integration process of encryption.

In the accelerating integration of TradFi and the encryption sector, Mastercard is breaking through in multiple areas, building its own encryption business landscape.