MetaMask Unveils Self-Custody Crypto Card with Mastercard
MetaMask is expanding its offerings by launching a self-custody crypto card in partnership with Mastercard. Developed alongside CompoSecure and Baanx, the card allows users to spend their digital assets directly. Unlike traditional crypto cards tied to centralized exchanges, MetaMask’s card leverages smart contracts and operates on the Ethereum-based Linea network. Transactions are processed in under five seconds, highlighting a focus on speed and user control.
This move aims to offer crypto holders an alternative to custodial platforms, which have faced notable security issues. For example, Bybit, one of the largest centralized exchanges, suffered a $1.4 billion hack in February. As a result, confidence in such platforms has weakened, pushing more users toward self-custodial options like MetaMask’s.
Competition and Challenges in a Crowded Space
Despite its appeal, MetaMask’s card enters a highly competitive market. Well-established players like Binance, Coinbase, Bybit, and Crypto.com already offer crypto debit cards. Some of these products even provide “crypto-back” incentives, allowing users to earn digital currencies with each purchase. To stand out, MetaMask must offer compelling benefits that go beyond basic functionality.
While innovation is part of its strategy, MetaMask has recently seen reduced user engagement. According to Dune Analytics, the wallet provider generated just $289,312 in fees during the week of April 14 down significantly from $1.3 million the same week in 2024. This trend suggests the Ethereum ecosystem is currently facing lower activity, posing an additional challenge for the wallet’s new financial product.
Real-World Crypto Payments Gain Momentum
Even with headwinds, the broader use of crypto in payments is growing quickly. For instance, luxury brands such as Dorsia now accept digital currencies. Meanwhile, Signal is reportedly exploring Bitcoin for peer-to-peer transfers, and a bill in New York proposes allowing crypto for state-level payments.
These developments show a clear shift: crypto isn’t just about investment anymore. Instead, it’s evolving into a viable medium for daily transactions. MetaMask’s card fits into this trend, offering users another way to bridge the gap between blockchain assets and real-world use.
