Visa has achieved a groundbreaking milestone by becoming the first major payments network to settle transactions using USD Coin (USDC), a dollar-backed stablecoin. This innovation bridges digital and traditional currencies, enhancing flexibility for crypto-native businesses.
Pioneering Stablecoin Settlement
Visa’s pilot program with Crypto.com allows USDC transactions to be settled over the Ethereum blockchain, eliminating the need for traditional fiat currency conversions. Key benefits include:
- Reduced costs by bypassing fiat intermediaries.
- Streamlined workflows for crypto-focused treasuries.
- Future-ready infrastructure for central bank digital currencies (CBDCs).
The collaboration leverages Anchorage, Visa’s federally chartered digital asset banking partner, to ensure secure and compliant settlements.
Why This Matters
Jack Forestell, Visa’s Chief Product Officer, emphasizes:
"This addresses fintechs’ needs to manage businesses in stablecoins, extending our role in global multi-currency payments."
Kris Marszalek of Crypto.com adds:
"This partnership accelerates crypto adoption by providing efficient tools."
FAQs
1. What is USDC?
USDC is a regulated stablecoin pegged 1:1 to the USD, ensuring price stability for transactions.
2. How does Visa’s USDC settlement work?
Partners like Crypto.com send USDC to Visa via Ethereum, which counts toward their Visa card obligations.
3. Will more partners adopt USDC settlement?
Visa plans to expand this capability to additional partners in 2025.
4. Is USDC secure?
Yes, USDC is licensed by Centre and backed by audited reserves.
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The Future of Digital Currency
Visa’s move signals a shift toward blockchain-based settlements, with potential applications for CBDCs. David Puth of Centre notes:
"USDC on Visa’s network advances our mission to connect global finance."
For details, visit Visa’s official announcement.
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