Visa is testing the capability with Crypto.com and plans to offer the USDC settlement capability to additional partners later this year
Visa has announced the use of USD Coin (USDC), a stablecoin backed by the US dollar, to settle a transaction with Visa over Ethereum.
Visa has spent the last year establishing a pathway for digital currency settlement within Visa’s existing infrastructure, a platform that moves billions of dollars each day across thousands of institutions in over 200 markets and 160 currencies.
Working with Anchorage, the first federally chartered digital asset bank and Visa’s digital currency settlement partner, Visa has launched a pilot that allows Crypto.com to send USDC to Visa to settle a portion of its obligations for the Crypto.com Visa card program.
Visa’s standard settlement process requires partners to settle in a traditional fiat currency, which can add cost and complexity for businesses built with digital currencies.
The ability to settle in USDC can ultimately help Crypto.com and other crypto native companies evaluate fundamentally new business models without the need for traditional fiat in their treasury and settlement workflows. Visa’s treasury upgrades and integration with Anchorage also strengthen Visa’s ability to directly support new central bank digital currency as they emerge in the future.
We’ve reported that Visa teamed up with neobank to trial the crypto API program.