Bakkt taps Thredd for stablecoin credit card service - The Paypers

Bakkt has selected Thredd, a payments processing platform, to support a stablecoin-linked credit card service, according to The Paypers. The arrangement pairs Bakkt's digital asset infrastructure with Thredd's card issuing and processing capabilities, extending stablecoin utility into everyday card payments.

The development is notable because it reflects a broader push to connect stablecoins—tokens designed to hold a steady value, typically pegged to a fiat currency—with conventional payment rails. Rather than requiring merchants to accept crypto directly, card networks can handle settlement in familiar currency while the underlying stablecoin infrastructure operates behind the scenes. That structure could make digital asset exposure more accessible to mainstream consumers and businesses.

What to watch: whether the service moves beyond announcement into live issuance, which markets and card networks it reaches, and how regulators treat stablecoin-backed consumer credit. Adoption will likely depend on clear disclosure of how stablecoin holdings are custodied and converted, plus the fee and settlement terms merchants face. For now, the news signals continued convergence between crypto firms and established payments providers rather than a standalone product launch.