The Token 2049 conference in Singapore marked a pivotal moment in blockchain-based payments as Visa, Mastercard, and Worldpay unveiled a revolutionary end-to-end settlement system for US Dollar Coin (USDC). This collaboration harnesses the Hedera network and integrates a proof-of-reserve mechanism powered by Hashport Network’s Axiom oracle.
Key Features of the Partnership
1. Stablecoin Settlement Integration
- Visa and Mastercard users can now settle transactions using USDC, a stablecoin pegged to the US dollar.
- The Hedera network ensures faster, low-cost cross-border transactions compared to traditional banking.
2. Proof-of-Reserve Mechanism
- Real-time transparency for funds backing USDC.
- Hashport Network’s Axiom oracle validates reserve accuracy, enhancing trust in the stablecoin ecosystem.
3. Hedera Network’s Role
- Provides high-performance, secure, and real-time settlement.
- Maintains transaction integrity through decentralized ledger technology.
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Why This Matters
For Merchants & Consumers
- Reduced transaction costs and faster settlements.
- Increased confidence in stablecoin-backed payments.
For the Financial Industry
- Signals growing adoption of blockchain technology by traditional payment giants.
- Paves the way for wider institutional use of decentralized finance (DeFi).
Live Demonstration at Token 2049
Attendees explored the solution firsthand at the Hedera Booth P76, showcasing how Visa, Mastercard, Worldpay, Hedera, Hashport, Arkhia, and BCW LLC are building trust in merchant stablecoin settlements.
Future Implications
This collaboration could accelerate innovation in:
- Cross-border payments
- Merchant settlement systems
- Regulatory frameworks for stablecoins
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FAQ Section
Q1: How does USDC settlement work on Hedera?
A1: Transactions are processed via Hedera’s DLT, ensuring real-time, low-fee settlements with proof-of-reserve validation.
Q2: Is this system available globally?
A2: Currently in pilot phase, with plans for broader rollout following regulatory approvals.
Q3: Why choose Hedera over other blockchains?
A3: Hedera offers enterprise-grade security, high throughput, and energy efficiency, making it ideal for payment solutions.
Disclaimer: This content is for informational purposes only and does not constitute financial or legal advice. Always consult professionals before making decisions.