Coinbase to power stablecoin-backed cards for Marqeta customers

Payments technology company Marqeta is expanding a six-year partnership with Coinbase to let businesses offer payment cards funded by customers' stablecoin holdings.

A Friday release says Coinbase will hold the stablecoins and handle the conversions between digital and traditional currencies. That leaves Marqeta to handle issuing the cards and processing payments.

Coinbase's Base blockchain will provide the onchain settlement infrastructure.

The service is aimed at Marqeta's business customers, which include both crypto and traditional companies. Cardholders will be able to spend their stablecoins with the "millions of merchants" that accept cards, while businesses can fund their card programs 24/7, the companies said.

"Coinbase is enabling businesses to move money with the speed and efficiency they require," said Alec Lovett, Head of Infrastructure Products Coinbase. "Our collaboration with Marqeta will combine our stablecoin payment rails with their powerful issuing and processing capabilities to deliver real-time global transactions that meet the needs of modern consumers and businesses."

Coinbase and Marqeta have already worked together on Coinbase's own card. The crypto exchange named Marqeta as the processor powering its U.S. debit card offering in October 2020. That card allowed customers to spend crypto, including USDC, and earn crypto rewards.

The release did not specify fees, a rollout date, or what stablecoins would initially be supported.