Coinbase and Marqeta Expand Their Payments Partnership
Coinbase and payments technology company Marqeta are expanding their six-year partnership to enable businesses to offer payment cards funded by customers’ stablecoin holdings. The arrangement combines Coinbase’s digital asset infrastructure with Marqeta’s card issuing and payment processing technology.
Under the expanded collaboration, Coinbase will hold customers’ stablecoins and manage conversions between digital assets and traditional currencies. Marqeta will oversee the issuance of payment cards and the processing of transactions made with them.
The companies also plan to use Coinbase’s Base blockchain as the onchain settlement infrastructure supporting the service. The arrangement is designed to connect stablecoin holdings with conventional card payments, allowing users to spend supported digital assets at merchants that accept payment cards.
How Stablecoin-Funded Cards Will Work
The proposed service divides responsibilities between the two companies. Coinbase will manage stablecoin custody and currency conversion, while Marqeta will provide the card issuing and payment processing capabilities needed to support purchases.
This structure allows Marqeta’s business customers to build payment card programs around stablecoin holdings without taking over the custody and conversion functions assigned to Coinbase. The companies have not yet specified the fees or detailed operating arrangements that will apply to the service.
Base will provide the blockchain infrastructure for onchain settlement. This brings a blockchain-based component into a payment system that still relies on conventional card networks and merchant acceptance. The announcement does not detail the technical settlement process, including how transactions will be reconciled or how quickly funds will move between each stage.
Businesses Could Fund Card Programs Around the Clock
The service is aimed at Marqeta’s business customers, which include companies operating in both the cryptocurrency industry and traditional financial markets. These businesses could use the arrangement to offer payment cards linked to customers’ stablecoin balances.
Cardholders are expected to be able to spend their stablecoins at the “millions of merchants” that accept payment cards. The companies also said businesses would be able to fund their card programs 24 hours a day, seven days a week.
Continuous funding could provide businesses with greater flexibility when managing card programs outside conventional banking hours. However, the announcement did not provide specific availability commitments, geographic restrictions, supported currencies or details about when customers will be able to begin using the service.
Coinbase Highlights Real-Time Global Payments
Alec Lovett, Head of Infrastructure Products at Coinbase, described the collaboration as a way to combine stablecoin payment infrastructure with established card issuing and processing capabilities.
“Coinbase is enabling businesses to move money with the speed and efficiency they require,” Lovett said. “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.”
The statement outlines the companies’ intended direction for the partnership, particularly their focus on payment speed and global transaction capabilities. Specific performance figures, supported countries and service-level commitments were not included in the announcement.
Stablecoins are digital assets designed to maintain a relatively stable value, often by tracking a traditional currency such as the U.S. dollar. Their role in payment systems differs from that of more volatile cryptocurrencies because their intended price stability can make them more practical for transferring and holding value. The stablecoins that will initially be supported by this particular service have not yet been disclosed.
Marqeta and Coinbase Have Worked Together Before
The expanded agreement builds on an existing relationship between the companies. In October 2020, Coinbase selected Marqeta as the processor for its U.S. debit card offering.
That earlier card allowed customers to spend cryptocurrency, including USD Coin (USDC), and earn cryptocurrency rewards. The arrangement demonstrated how Coinbase’s digital asset services could be connected to a payment card product through Marqeta’s processing infrastructure.
The new collaboration extends the relationship toward business-focused payment programs funded by stablecoins. Rather than being limited to Coinbase’s own card offering, the expanded partnership is aimed at Marqeta customers that want to develop their own stablecoin-backed payment experiences.
The two companies have not announced whether the new service will use the same features or reward structure as Coinbase’s earlier card product. The previous arrangement provides background on their working relationship but does not establish the precise terms of the expanded service.
Launch Date, Fees and Supported Stablecoins Remain Unconfirmed
The announcement did not specify a rollout date, transaction fees or the stablecoins that will be supported at launch. It also did not outline eligibility requirements for businesses, geographic availability or whether cardholders will face limits on spending or funding.
These details will be important for companies evaluating the service and planning their own card programs. The practical experience for customers will depend on the supported assets, conversion terms, settlement arrangements and the conditions under which businesses can fund their programs.
For now, the partnership establishes a framework combining Coinbase’s custody and currency conversion services, Base’s onchain settlement infrastructure and Marqeta’s card issuing and payment processing capabilities. Its next steps will depend on the product details and launch information the companies disclose.
The collaboration reflects an effort to connect stablecoin balances with familiar card-based payments. Whether it becomes widely adopted will depend on the final service offering, business participation and the experience available to cardholders.
