Key Highlights
- Visa successfully settled a transaction using USD Coin (USDC) and Ethereum on its payment network.
- Expanding its "network of networks", Visa aims to support broader digital currency settlement options.
- Partners include Anchorage (digital-assets bank) and Crypto.com (payment gateway).
Visa’s Digital Currency Settlement Breakthrough
Visa has completed an 18-month initiative to integrate digital currency settlement into its treasury infrastructure. This milestone allows transactions using USDC over the Ethereum blockchain, signaling a shift toward crypto-friendly payment solutions.
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Strategic Partnerships
- Anchorage: Provides custody solutions for secure digital-asset settlements.
- Crypto.com: Acts as a gateway for crypto-native transactions.
Jack Forestell, Visa’s Chief Product Officer, emphasized:
"This addresses fintechs managing businesses in stablecoins or cryptocurrencies—extending Visa’s everyday capabilities."
Why USDC?
Visa evaluated digital assets based on:
- Demand: Merchant and institutional adoption.
- Stability: Low volatility (e.g., stablecoins like USDC).
- Security: Regulatory compliance and liquidity.
USDC stood out with:
- $10B+ in circulation.
- Strong developer community.
- Proven use cases (e.g., cross-border B2B payments, remittances).
Mastercard’s Parallel Move
In February, Mastercard announced plans to integrate select cryptocurrencies, citing strict compliance filters. Both companies hold extensive blockchain patents, with Visa filing a CBDC settlement patent in 2022.
Future Outlook
Visa’s upgrades pave the way for:
- CBDC support as governments rollout digital currencies.
- Crypto-native fintech collaborations.
FAQ
1. How does Visa’s USDC settlement work?
Transactions are settled over Ethereum, with Anchorage facilitating custody and Crypto.com processing payments.
2. Why did Visa choose USDC?
USDC meets Visa’s criteria for stability, security, and regulatory compliance.
3. Will Visa support other cryptocurrencies?
Currently focused on stablecoins, but future expansions are possible.
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