Mastercard Reports Tokenizing 30% of Transactions in 2024, Recognizes Cryptocurrencies' Disruption

Mastercard, the multinational payment services giant, announced that it had tokenized 30% of its transactions in 2024 and acknowledged the potential of stablecoins and other cryptocurrencies to disrupt traditional financial services. The company detailed its progress towards innovating the payments ecosystem in a filing with the US Securities and Exchange Commission, highlighting the tokenization of transactions, development of blockchain-based business models, and simplification of access to digital assets. Mastercard emphasized its commitment to supporting blockchain ecosystems and digital currencies through a principled approach that includes risk management practices and monitoring partners in the digital asset market. Additionally, the company reported a 12% increase in net revenue for 2024, totaling $28.2 billion. Mastercard recognized stablecoins and cryptocurrencies as emerging competitors in the payments industry, noting their potential to challenge existing products and disrupt traditional financial markets. Lawmakers in the US are preparing legislation to regulate stablecoins and enhance the dollar's global dominance, with a discussion draft released by US representatives French Hill and Bryan Steil outlining a regulatory framework for stablecoins. Stablecoins saw significant transfer volumes in 2024, surpassing the combined volumes of Visa and Mastercard, with bot usage contributing to the spike in transfer volume to improve market efficiency.