WalletConnect Pay Bets on Crypto Scaling for Checkout
- Cryptocurrency payments have spent years hovering at the edge of mainstream commerce.
- Now,momentum is building as infrastructure providers focus less on blockchains and more on making digital currency usable at scale.
- WalletConnect Pay CEO Jess Houlgrave said the long road to adoption reflects a basic misunderstanding of what payments actually require.
Cryptocurrency payments have spent years hovering at the edge of mainstream commerce.
Now,momentum is building as infrastructure providers focus less on blockchains and more on making digital currency usable at scale.
WalletConnect Pay CEO Jess Houlgrave said the long road to adoption reflects a basic misunderstanding of what payments actually require.
“Peopel conflate what settlement is and what a payment is,” she said during a PYMNTS TV interview. “Blockchains are really great for settling value and for moving value, but all of the other pieces of a payment-all of the messaging and the intricate bits-are not really designed for a blockchain ecosystem.”
That gap, described by the CEO as the “messy middle” of payments, includes authorization, capture, refunds and disputes. Houlgrave said those elements explain why crypto payments have struggled to move beyond experimentation.
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Stablecoins, Wallets and the Role of Card Networks
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Stablecoins have emerged as the most practical crypto asset for payments, especially as wallets increasingly link to traditional card rails.
“A number of crypto wallets have now linked Visa and Mastercard to those wallets, and the transaction volumes have shot thru the roof during 2025,” Houlgrave said.
Card-based stablecoin volume reached roughly $500 million in December, growing rapidly month over month, even if still small in the context of global payments, she said.
Stablecoin Adoption for In-Store and Online Payments
Mastercard is focused on enabling the use of stablecoins for everyday purchases, both in physical stores and online, according to a recent statement by a Mastercard executive. the company believes consumers and merchants are increasingly understanding the potential of stablecoins and are working to facilitate their integration into existing payment systems.
Mastercard’s Strategy for Stablecoin integration
Mastercard aims to provide consumers holding stablecoins wiht practical ways to utilize them for transactions. The company’s goal is to bridge the gap between the digital asset world and traditional commerce.
According to Mastercard, the increasing understanding of stablecoins among consumers and merchants is driving this initiative.They are working to expand the utility of stablecoins beyond just investment or speculative purposes.
As of January 19, 2026, there have been no major announcements altering Mastercard’s stated strategy regarding stablecoin integration. Mastercard’s official website details their ongoing exploration of digital currencies, including stablecoins, and their commitment to interoperability.
what are Stablecoins?
Stablecoins are cryptocurrencies designed to maintain a stable value relative to a specific asset, typically the U.S. dollar. The Federal Reserve issued guidance in July 2023 regarding the supervision of stablecoin issuers, highlighting the importance of regulatory compliance and risk management.
Unlike other cryptocurrencies like Bitcoin, which can experience meaningful price volatility, stablecoins aim to provide a more predictable and reliable medium of exchange. They achieve this by being backed by reserves of the underlying asset, or through algorithmic mechanisms.
Such as, Tether (USDT) is a widely used stablecoin pegged to the U.S. dollar, with Tether Limited claiming to hold reserves equivalent to the circulating supply of USDT. Tether’s website provides details on their reserve composition and attestation reports.
Regulatory Landscape of Stablecoins
The regulatory environment surrounding stablecoins is evolving. The U.S. House of Representatives passed the “Financial Innovation and Technology for the 21st Century act” (FIT 21) in May 2024, aiming to establish a regulatory framework for stablecoins and digital assets. The full text of FIT 21 is available on the House financial Services Committee website.
This legislation seeks to clarify which federal agencies have authority over stablecoin issuers and to establish requirements for reserve management and consumer protection. The SEC and other regulatory bodies continue to monitor the stablecoin market and enforce existing securities laws where applicable.
On December 20, 2023, the President signed into law a provision within the National Defense Authorization Act for Fiscal Year 2024 that directs the Government Accountability Office (GAO) to study the use of stablecoins by U.S. adversaries. The GAO report is expected to be completed by December 2024.