Key points:
Stablecoins can accelerate Mastercard's growth in cross-border payments between companies, remittances, and the economy of content creators.
Mizuho maintains a positive rating for MA shares and a target price of $666.
After acquiring the startup BVNK, which works with stablecoins, Mizuho analysts believe that Mastercard could take on the role of a bridge between the crypto market and traditional finance.
They made this conclusion after speaking with Mastercard’s product director, Jorn Lambert. He dispelled concerns that stablecoins could harm the company's core business.
Currently, Mastercard shares are trading around $502. They gained approximately 0.77% in a day.
Analysts from Mizuho, Dan Dolev and Alexander Jenkins, believe that stablecoins are more likely to strengthen the existing Mastercard network rather than pose a threat to card payments.
This is about faster and cheaper transfers, including international payments and payments between companies. Additionally, transfers can operate around the clock, even on weekends. At the same time, cards will remain the main tool for users.
This is especially important for segments where Mastercard's positions are still weaker. This includes B2B payments, remittances, and the freelance economy. Card penetration there is still limited.
The purchase deal for BVNK may cost Mastercard up to $1.8 billion. It comes against the backdrop of growing interest in stablecoins in the USA.
Under the Trump administration, regulation became more lenient. Some companies have already received conditional licenses to launch stablecoin banks. Major players like Stripe and Visa are also actively entering this market.
Mizuho notes that the acquisition of BVNK strengthens Mastercard's current role. The company already acts as a link between different payment systems. Now it is expanding this model to operations between stablecoins and traditional currencies.
Mastercard ranks second among payment networks in the world.
The company is already actively working with crypto projects. For example, it helps launch crypto cards for services like MetaMask and Gemini. The use of such cards has been growing in recent months.
BVNK provides access to key infrastructure. This includes the inflow and outflow of funds, exchanges between stablecoins and tokenized deposits, cross-chain functions, and working with wallets.
“These opportunities allow for the free movement of funds between currencies, blockchains, and different jurisdictions,” analysts note.
The BVNK licensing model stands out. It allows companies to launch products faster and gradually transition to their own banking infrastructure.
Mastercard is also among the first users of the Solana Developer Platform. It helps companies build on-chain infrastructure faster.
In addition, Mastercard has joined the Crypto Partner Program. It includes more than 85 crypto companies, including Binance, Circle, Ripple, Gemini, PayPal, and Paxos.
#Mastercard #BVNK #Binance #Circle #Ripple
