Visa is the first payment network to settle transaction in USD Coin
- Visa has partnered with Crypto.com and Anchorage Digital Bank to settle a transaction in USDC.
- With this move, the payment network erodes the divide between fiat and mainstream cryptocurrency use.
Visa announced today that it had used USD Coin to settle a transaction over Ethereum. USD Coin (USDC) is a stablecoin backed by the US Dollar.
What’s happening: Visa is piloting the capability with Crypto.com, a large crypto platform and Visa partner. Visa is expanding its network of networks into cryptocurrency as it looks for ways to further bridge fiat and digital currencies.
The partnerships between incumbents and fintechs — between companies rooted in fiat and those adopting new digital currencies — are enabling the mainstreaming of crypto. PayPal, Square, and Revolut are all expanding their support of cryptocurrencies.
How it works: Visa’s standard settlement process for purchases made on Crypto.com Visa cards each day required Crypto.com to convert its digital currencies into a traditional fiat currency that Visa accepts — adding cost, time, and complexity to daily business processes.
Working with Anchorage, the first federally chartered digital asset bank and an exclusive Visa digital currency settlement partner, Visa 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.
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