Mastercard (MA +0.40%), one of the world’s largest card payment service companies, has made a big push into stablecoins over the past five years. Let’s see why it’s so bullish on the cryptocurrency, and what its expansion might mean for the broader crypto market.

What are stablecoins?

Stablecoins are cryptocurrencies pegged to a stable fiat currency, such as the U.S. dollar or the Euro. They’re usually backed by cash and Treasuries, can be held without a bank account, and facilitate faster, cheaper settlements than conventional bank transfers.

Their payments can also be settled 24/7, 365 days a year, without any concerns regarding banking hours or holidays. Stablecoins can also be deposited into third-party lending markets, automated…