Visa Now Supports Payment Settlement with USDC Stablecoin on the Ethereum Blockchain

This article comes fromThe Block, original author: Yogita Khatri

Odaily Translator | Nian Yin Si Tang

Summary:

This article comes from

, original author: Yogita Khatri

Odaily Translator | Nian Yin Si Tang

secondary title

Summary:

- Visa now supports USDC stablecoin settlement on the Ethereum blockchain.

- Visa initially partnered with Crypto.com.

- The company hopes to roll out USDC settlement capabilities for other partners "in the coming year."

Visa announced Monday that it now supports settlement of payments in the USDC stablecoin on the ethereum blockchain.

The development means Visa has become the first major payment network to use a stablecoin as a settlement currency. Until now, Visa has only settled payments in fiat currencies.

For its new USDC settlement capability, Visa is initially launching a pilot program with Crypto.com, allowing the crypto firm to manage its card business entirely in cryptocurrency.

Previously, Visa's standard settlement process required Crypto.com to settle in fiat currency, which added processing costs and complexity to the company. Now Crypto.com will settle directly with Visa in USDC without having to go through a conversation.

"Today's move marks a major milestone in our efforts to meet the needs of fintech companies to manage their businesses in stablecoins or cryptocurrencies," said Jack Forestell, Visa's chief product officer. effectively facilitates payments in all different currencies around the world.”

Crypto.com co-founder and CEO Kris Marszalek said the company wants to "enable millions of consumers around the world to access and use digital currencies," and that Visa's ability to "directly accept and interact with digital currencies" Help it maximize the advantages of digital currency.Visa’s settlement agent for USDC is crypto bank Anchorage. This means that Crypto.com sends USDC to Visa's Ethereum address in Anchorage.。

“In 2019, Visa approached us with an idea to enable safe, efficient, and seamless digital currency settlement payments by connecting Visa’s treasury with Anchorage’s custody platform, said Diogo Mónica, Co-Founder and President of Anchorage.

Visa said it was “one small step” for its settlement platform, but “a giant leap” for integrating digital assets.

After further testing and conversations with customers, partners and members of the regulatory body, Visa hopes to roll out USDC settlement capabilities for other partners as well “in the coming year.”

Finally, Visa also plans to settle payments in a central bank digital currency (CBDC). Earlier this month, Visa CEO Al Kelly said,