Visa has become the first major payments network to settle transactions in USD Coin (USDC), a stablecoin backed by the US dollar.
Visa conducted the transaction in partnership with Crypto.com, using the USDC to settle the transfer over open source blockchain Ethereum.
Visa has spent the last year working with digital asset bank Anchorage to build a pathway for digital currency settlement across its fiat-only payment rails, effectively acting as the on and off ramps for payors and payees using stablecoins.
The pilot transaction with Crypto.com enabled the firm to settle a portion of its obligations for the Crypto.com Visa card programe via USDC.
Visa plans to offer the USDC settlement capability to additional crypto-native companies later this year as an alternative to traditional fiat in treasury and settlement workflows.
Jack Forestell, Visa EVP and chief product officer, says: “The announcement 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.”