Posted 4 months ago | by Catoshi Nakamoto
Visa stated it will allow the use of the USDC stablecoin to settle transactions on its payment network.
Visa has launched a pilot program with payment and crypto platform Crypto.com and plans to offer the option to more partners later this year, the company said.
The USD Coin (USDC) is a stablecoin cryptocurrency which value is always pegged directly to the U.S. dollar. This essentially means that now, when you buy for example a coffee at Starbucks with the Crypto.com card, the payment will be settled in a swap to USDC instead of transferred to U.S. dollars. USDC has the second-largest stablecoin market cap with an $11 billion evaluation according to Coingecko at the time of this report.
The USDC stablecoin is issued on Ethereum and developed by Circle Internet Financial.
Typically digital currency held in a cryptocurrency wallet spent using the Crypto.com card needs to be converted into fiat. But with news that VISA will allow settlements in USDC this will take away the need to convert digital assets into fiat in order for the transaction to be settled by Crypto.com or any other businesses offering similar services, Reuters reported.
“Crypto-native fintechs want partners [that] understand their business and the complexities of digital currency form factors,” Visa Chief Product Officer Jack Forestell said in the press release. “The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency, and it’s really an extension of what we do every day, securely facilitating payments in all different currencies all across the world.”
Visa said it has partnered with digital asset bank Anchorage and completed the first transaction this month — with Crypto.com sending USDC to Visa’s Ethereum address at Anchorage.
Anchorage was given approval to receive a national trust charter making it the first digital asset bank in the U.S. after then U.S. Office of the Comptroller of the Currency (OCC) acting chief, Brian Brooks issued the certificate in January, Bitboy Crypto reported.
VISA CEO Al Kelly previously stated that cryptocurrencies could become “extremely mainstream” in five years, as Bitboy Crypto reported.
Kelly stated that VISA wants to make sure that the global digital payments giant is “in the middle of it.”
“The thing about our business that I actually like, Alan, is that we don’t pick winners and losers. You know, as you and I sit here and talk today, I don’t know to what degree cryptocurrencies are gonna take off. Are we gonna say in five years that it was a fad and it wasn’t a big deal? Or is it gonna be extremely mainstream? I’m not smart enough to know, but what I’m smart enough to do is make sure that our company is in the middle of it today,” Kelly said.
The executive further claimed that VISA is all about letting its customers move their money instead of solely focusing on payments. This is despite previous claims over the years that those that made transactions connected to cryptocurrency had their accounts locked out and shut down.
“If it takes off and we can get our fair share or more of the volume because we anticipate that possibly could take off and become a big deal, we certainly wanna be prepared for that, and I think we are off to a very good start.”
VISA also has partnered with Ethereum-based USDC stablecoin, announcing they would be connecting their global payments network of over 60 million merchants to the U.S. Dollar Coin (USDC), as we shift towards a world of digital cash. So the digital payments company seems to be all in when it comes to being exposed in the cryptocurrency market.
Watch Ben of Bitboy Crypto in the live stream below explain what this means for the overall crypto industry!
Ethereum is currently trading at [FIAT: $1,833.57] UP +7.8% in the last 24 hours according to Coingecko at the time of this report.