Mastercard, Coinbase Target Two Stablecoin Barriers

Mastercard has launched a tool for banks and financial firms to screen stablecoin transactions for fraud, scams and potential sanctions violations before settlement.

The system assesses payment activity before a transaction reaches its final recipient. Stablecoin payments can pass through several transfers, which can make risk checks harder and limit monitoring after funds have been settled.

Borderless.xyz and Keyrails are among the first companies supporting the product during its North American launch. Mastercard plans to offer the service globally beginning in 2027.

Coinbase and Thunes are working to expand local payout options for stablecoin payments. Coinbase’s stablecoin-enabled payment systems will connect to Thunes’ Direct Global Network, which links payment providers with bank accounts and mobile wallets in more than 140 countries and supports 90 currencies.

The arrangement will allow recipients to receive stablecoin payments in local bank accounts or mobile wallets instead of holding the funds as digital assets. Merchants, customers and other recipients can use the local payout options when receiving stablecoin payments.

The Mastercard product focuses on transaction screening before settlement. The Coinbase and Thunes arrangement connects stablecoin payments with existing local payment networks.

Allium data for 2026 showed stablecoin payment volumes rising while the overall supply of stablecoins remained largely flat. The data indicated that existing stablecoins were circulating more frequently, with the same units used in more transactions.