Visa Inc has taken its first steps into the world of cryptocurrency with USD Coin to be allowed to settle transactions on its network in future.
Settlement using USD Coin (USDC), a stablecoin backed by the US dollar, will be over Ethereum—one of the most actively used open-source blockchains.[
Visa has partnered with Crypto.com to offer the service with additional partners to be offered USDC settlement capability later this year, the first payments to do so claimed the payments titan.
“Support for digital currencies as a new type of settlement currency marks an important step forward for Visa’s network of networks strategy,” said the card payment giant, which added it had spent a year ‘establishing a pathway for digital currency settlement within Visa’s existing treasury infrastructure’.
Visa said that its 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," it said.
Using a platform developed by Anchorage, a digital asset bank, Crypto.com can send USDC to Visa to settle a portion of its obligations for the Crypto.com Visa card program.
Jack Forestell, Visa’s chief product officer said the mover marked a major milestone in its ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency.
“It’s really an extension of what we do every day, securely facilitating payments in all different currencies all across the world.”