Marqeta and Coinbase launch stablecoin-backed cards for Marqeta's enterprise customers, settled on Base

Marqeta's enterprise customers can now offer stablecoin-backed payment cards powered by Coinbase, the two companies announced on Friday. Cardholders spend from a stablecoin balance anywhere cards are accepted.

The split is clear: Coinbase holds custody of the stablecoin balances and converts between digital assets and fiat, its Base blockchain provides the on-chain settlement layer, and Marqeta handles card issuance, processing and the bank and network relationships. The deal extends an existing relationship under which Marqeta already issues Coinbase's crypto-backed cards.

Marqeta chief strategy officer Anthony Peculic said expanding the Coinbase relationship was a natural step as the company builds out the full stack for stablecoin-backed cards; Coinbase's Alec Lovett framed it as combining stablecoin rails with Marqeta's issuing and processing. Marqeta CEO Mike Milotich told analysts in August that the strategy is to make digital dollars spendable on the card rails customers already use.

The read: this is the second stablecoin-card announcement from a major issuer-processor this week, after Mastercard and BVNK; the card networks are becoming the off-ramp.