The collaboration will see Stables, formerly Tiik, allow customers to save and spend USD Coins (USDC), which will be converted to fiat currency and settled on Mastercard’s network.
Stables says the Mastercard provided to use stablecoins - once they are converted - will be accessible through the Stables digital app via mobile wallets, enabled for everyday spending.
Stables Co-Founder and CEO Erez Rachamim said the introduction of stablecoin payments for everyday purchases marks a significant step in the maturity of cryptocurrency in the Asia-Pacific market.
“As adoption for digital assets increases across the globe people are requiring simple and accessible means to get utility from their digital assets in the real world,” Mr Rachamim said.
“Customers spend as they usually would using stablecoins, with transactions then settled by Stables’ payment gateway enabling real-time transactions using USDC.
“Conversion and settlement occur behind the scenes, secured with digital asset custody technology provider Fireblocks, thus enabling users to checkout as they normally would with a debit card.”
What is a stablecoin?
If you are scratching your head as to what a stablecoin actually is, Stables notes they are a type of digital currency that creates a link between the world of cryptocurrency (crypto) and traditional fiat currencies.
Generally stablecoins are pegged to a reserve asset, such as gold or the US Dollar, in order to significantly reduce volatility compared to other cryptocurrencies.
In Australia, stablecoins are a relatively new format with two of Australia’s major banks, ANZ and NAB, both creating their own stablecoins in the past 12 months to continue the digital evolution of currency.
Further, the Reserve Bank of Australia is currently undertaking a research project with the Digital Finance Cooperative Research Centre on the potential for a central bank digital currency (CBDC) in Australia.
NAB Executive General Manager Markets Drew Bradford said banks are investing to develop Australia’s safest, simplest and most secure digital asset ecosystem.
“We believe that elements of the future of finance will be blockchain enabled and we’re already witnessing rapid change in the tokenisation market,” Mr Bradford said.
Like Stables, NAB in forming its own stablecoin ‘AUDN’, partnered with Fireblocks to facilitate minting and burning its stablecoin and managing the direct custody of the digital assets on the blockchain technology.
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Image provided by Stables