Mastercard’s Chief Product Officer, Jorn Lambert, said stablecoins are not yet ready for everyday payments due to limited user experience and adoption.

He said that about 90% of stablecoin usage is tied to crypto trading, not peer-to-merchant transactions, which still face checkout friction and weak consumer incentives.

Mastercard has partnered with issuers like Paxos, Circle, and PayPal since 2021 to bridge traditional finance with stablecoin infrastructure.

Lambert said that stablecoins often operate like prepaid cards, requiring conversion to fiat currency for broader usability.

Raj Seshadri, Mastercard’s Chief Commercial Payments Officer, highlighted that additional costs are associated with stablecoin usage, including regulatory compliance and currency exchange.

As US legislation on stablecoins progresses, banks aim to retain deposits through them, while governments explore innovation without risking economic stability.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Divergent regulatory approaches are shaping stablecoin’s future

While Mastercard executives point to user experience challenges, the underlying regulatory landscape reflects significant regional differences in stablecoin approaches.

The U.S. has taken a pro-stablecoin stance with the Senate passing the GENIUS Act in June 2025, establishing a federal licensing framework that mandates full reserve backing for stablecoin issuers 1.

This contrasts sharply with the European Union’s approach, which prioritizes Central Bank Digital Currencies (CBDCs) for financial stability while imposing stringent requirements on stablecoins through the Markets in Crypto-Assets Regulation 2.

These regulatory differences explain why financial institutions like Mastercard are positioning themselves as infrastructure providers. They are preparing for multiple potential outcomes in different jurisdictions rather than betting on a single model.

The regulatory clarity in the U.S. has already catalyzed innovation, with stablecoin supply reaching $217 billion in Q2 2025, demonstrating the significant market impact of regulatory decisions 3.

2️⃣ Emerging markets are driving real-world stablecoin adoption

Mastercard’s observation that 90% of stablecoin volume remains tied to crypto trading overlooks significant adoption patterns in emerging economies facing specific economic challenges.