Card payment mogul Visa has launched transaction settlement in cryptocurrency for its customers. The launch is a pilot program in collaboration with cryptocurrency platform Crypto.com.
Visa Uses USDC for the Cryptocurrency Transaction Settlement
Visa has opened this cryptocurrency transaction settlement for its customers, beginning with the stablecoin U.S. Dollar Coin (USDC) over Ethereum’s open-source blockchain. Cuy Sheffield, Visa’s head of cryptocurrency, affirmed that USDC was a natural fit for the credit card giant. Visa arrived at this choice after establishing that most of its partners used USDC for common transactions such as employee and vendor payments.
Previously, Visa’s partners had to convert cryptocurrency payments to fiat and hence incur additional conversion rate expenses. With the launch, they can now settle payments directly using USDC. Crypto.com has already taken advantage of the launch and settled a portion of its obligation to the Crypto.com Visa card program using USDC.
The first federally chartered digital asset bank Anchorage is also involved in this launch. The digital currency settlement partner to Visa will be the custodian of the cryptocurrency payments to Visa. Crypto.com will send the funds to Visa’s Ethereum address at Anchorage.
The launch is a product of a year-long project between Visa and Anchorage for Visa to be the effect on and off-ramp for payers and payees using stablecoins. The card payment mogul Visa plans to extend the program to more crypto-native partners later in the year.
Digital Currencies Extending Growth into Mainstream Financial Industry
Visa’s cryptocurrency transaction settlement is one more indication of the growing inclusion of digital currencies into the mainstream financial industry. Jack Forestell, the Executive Vice President and chief product officer of credit card giant Visa, terms the launch as a significant milestone for the company. Visa can now tend to the needs of fintech as they facilitate payments in different forms on currencies. BNY Mellon, BlackRock Inc., and MasterCard, have also accepted digital coins in their payment streams, hence furthering their mainstream adoption.