Visa now processes payments in USDC stablecoin on Ethereum blockchain
- Visa is now processing payments in USDC stablecoin on the Ethereum blockchain.
- Visa is initially working with Crypto.com for the new service.
- The company hopes to roll out the USDC settlement capability to other partners “over the coming year.”
Visa announced on Monday that it is now processing payments in the USDC stablecoin on the Ethereum blockchain.
The development means Visa is the first major payment network to use Stablecoin as a settlement currency. Until now, Visa has only processed payments in fiat currencies.
For the new settlement option in USDC, Visa is initially working with Crypto.com as part of a pilot programme and is now letting the crypto company process its card business entirely in digital assets.
Previously, Crypto.com had to settle in fiat currency as part of Visa’s standard settlement process, which meant additional cost and complexity for the company. Now, Crypto.com will not have to go through conversations and will settle with Visa directly in USDC.
“Today’s announcement is an important milestone in our ability to address the needs of fintechs that conduct business in a stablecoin or cryptocurrency,” said Jack Forestell, Visa’s chief product officer. “And it’s really an extension of what we do every day, which is securely enable payments in all different currencies around the world.”
Kris Marszalek, co-founder and CEO of Crypto.com, said the company wants to “enable millions of consumers around the world to access and use digital currencies” and Visa’s ability to “accept and interact with digital currencies directly” helps maximise the benefits of digital currencies.
Visa’s settlement agent for the USDC capability is crypto bank Anchorage. This means that Crypto.com will send USDC to Visa’s Ethereum address at Anchorage.
“Visa came to us in 2019 with an idea – to enable secure, efficient and seamless settlement payments in digital currency by connecting Visa’s treasury to Anchorage’s custody platform,” said Diogo Mónica, co-founder and president of Anchorage. “This would give the next generation of crypto-native issuers the ability to settle directly with Visa in a digital currency over a public blockchain.”
Visa said the new service is “a small step forward” for its settlement platform, but “a huge step forward” for integrating digital assets.
After further testing and additional discussions with its clients, partners and members of the regulatory community, Visa hopes to roll out the USDC settlement feature to other partners “in the coming year”.
Finally, Visa also plans to process payments in central bank digital currencies (CBDCs). Earlier this month, Visa CEO Alfred Kelly said the company also wants to cover bitcoin and other cryptocurrencies, as well as stablecoins.
Visa rival Mastercard also intends to pursue business opportunities in cryptocurrencies and stablecoins, as well as future CBDCs.
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