Kraken has announced a new partnership with Mastercard aimed at enabling customers in the United Kingdom and Europe to use cryptocurrency for everyday purchases at millions of merchants worldwide. The deal, disclosed Tuesday, is part of a broader effort to integrate digital assets into traditional payment systems.
The collaboration allows Kraken users to spend their crypto holdings at more than 150 million retailers that accept Mastercard. Physical and digital debit cards tied to users’ crypto wallets are expected to roll out in the coming weeks, the companies said.
Expansion of Kraken Pay Services
The partnership builds on Kraken’s payments initiative, Kraken Pay, which was launched earlier this year. The feature allows users to make real-time payments using more than 300 digital and fiat currencies.
Kraken reported that over 200,000 customers have activated “Kraktags” — user IDs that facilitate peer-to-peer transfers — since the feature’s debut. The firm said the payment system is designed to operate across borders, offering functionality similar to traditional money transfers but powered by blockchain technology.
While not disclosing financial terms or user activity data, the company framed the Mastercard collaboration as a way to expand Kraken Pay’s real-world use.
Industry Push for Crypto Utility
Executives from both companies cited a shared interest in expanding the practical utility of digital assets. Kraken Co-CEO David Ripley said the partnership aligns with the exchange’s goal of making cryptocurrencies viable for everyday transactions.
Scott Abrahams, Executive Vice President of Global Partnerships at Mastercard, described the collaboration as a “concrete demonstration” of the company’s support for digital asset integration. He added that simplifying and securing crypto payments remains a core focus.
The partnership comes as regulatory scrutiny of crypto assets continues to grow across the European Union and the United Kingdom. Despite tighter compliance standards, both Kraken and Mastercard maintain that regulated infrastructure can help legitimize digital currencies and promote broader adoption.
Kraken, founded in 2011, is among the oldest cryptocurrency exchanges, serving over 15 million customers globally. Mastercard, a longstanding player in global payments, has increased its involvement in the crypto sector through partnerships and infrastructure development over the past few years. Details on card issuance and merchant compatibility will be provided closer to the product’s launch, the companies said.
