Visa announced that it will allow the use of USD Coin (USDC), a stablecoin backed by the US dollar, to settle transactions on its payment network over Ethereum, an open-source blockchain.
Visa said that it is piloting the capability with Crypto.com, a crypto platform and a Visa partner, and plans to offer the USDC settlement capability to additional partners later this year.
Working with Anchorage, a digital asset bank and an exclusive Visa digital currency settlement partner, Visa has launched the pilot programme with Crypto.com.
Visa’s standard settlement process requires partners to settle in a traditional fiat currency, which can add cost and complexity for businesses built with digital currencies.
The ability to settle in USDC can ultimately help Crypto.com and other crypto native companies evaluate fundamentally new business models without the need for traditional fiat in their treasury and settlement workflows.
Visa’s treasury upgrades and integration with Anchorage also strengthen Visa’s ability to directly support new central bank digital currency (CBDC) as they emerge in the future.
Jack Forestell, Executive Vice president and Chief Product Officer at Visa said,
“Crypto-native fintechs want partners who understand their business and the complexities of digital currency form factors.
The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency, and it’s really an extension of what we do every day, securely facilitating payments in all different currencies all across the world.”
Kris Marszalek, Co-Founder and CEO of Crypto.com said,
“We’ve seen record-breaking growth in our business and the broader crypto ecosystem over the last year. To continue accelerating the world’s transition to cryptocurrency, we need partners who understand the opportunity and the tools that will help us get to market faster and more efficiently.
Having been a Visa partner for several years, we’re excited to deepen that relationship through our global agreement and to pioneer an exciting world-first in stablecoin payments.”
