Cardano joins Mastercard crypto program – Can ADA turn it into adoption?

However, the move does not suggest that Mastercard is using Cardano as a direct component of their payment platform. Instead, it suggests there will be avenues for collaboration and potential future use cases and additional uses in the future.

If those discussions lead to actual payment applications, then Cardano would have gained some level of institutional recognition. Until that point, however, this represents opportunities, not an established relationship.

Cardano’s stablecoin base faces a key test

Cardano’s next challenge is building enough stablecoin liquidity for real payment use. Its stablecoin market holds about $60 million. However, at least $43 million of this is comprised of USDCx.

This means that USDCx accounts for over 70% of the total dollar-denominated assets available to users of the Cardano network.

Still, the majority of the activity is coming from DeFi applications, rather than being used for real-world payments. This matters because Mastercard’s program targets cross-border transfers, B2B payments, and settlement.

Despite Cardano offering low fees, the current lack of liquidity limits the ability to process larger amounts of flow through its rails. As such, an increase in USDCx in circulation, active user wallets, and overall transfer volumes will demonstrate stronger payment demand.