Leading payments network, Visa, has announced that it now settles payments in the USDC stablecoin on the Ethereum blockchain. This new development is another indication of the mainstream acceptance of cryptocurrency. This makes Visa the first major payments network to use stablecoin as a settlement currency.
This is an unprecedented giant leap forward for all cryptocurrencies worldwide. Hitherto, just like every other leading payments platform, Visa had operated using fiat currencies only.
Visa to Accept USDC
Solely focusing on USDC, Visa will only deal with Crypto.com for now as the company intends to scale the introduction of the new digital currency to their existing world following a successful pilot program.
As announced, further testing and additional processes are ongoing between Visa, its clients, partners, and members of the world regulatory communities to launch the USDC settlement capability for other partners as well by 2022.
Before now, crypto.com could only settle their transactions via Visa in fiat currency only. With this new development Crypto.com will just have to go ahead to settle all their transactions involving Visa directly in USDC, a cryptocurrency backed by the United States Dollars.
“…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.”
Jack Forestell – Chief Products Officer, Visa.
In the same vein, Kris Marszalek – Crypto.com co-founder and CEO, stated that consumers across the world can now access and use digital currencies, adding that “Visa’s capability to directly accept and interact with digital currencies” will help the world reach a new milestone.
Visa’s settlement address for the USDC settlement is Anchorage. This simply implies that:
Crypto.com >>> USDC >>> Visa’s Ethereum (ETH) address at Anchorage.
Industry watchers suggest that Mastercard, an arch rival of Visa, will also make a big announcement soon.
- Payments through Visa are now settled in the USDC stablecoin on the Ethereum blockchain.
- For now, Visa works only with Crypto.com as they scale the introduction to other clients within the year ahead.
- Anchorage is Visa’s settlement crypto bank for USDC