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Visa conducts first settlement transaction in USD Coin

Visa conducts first settlement transaction in USD Coin

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.”

Comments: (2)

Hitesh Thakkar
Hitesh Thakkar - SME - Fintech startups (APAC and Africa) - India 29 March, 2021, 15:38Be the first to give this comment the thumbs up 0 likes

VISA created strong foot hold in Crypto Currency space. How does this move by player impact others ?

Aaron McPherson
Aaron McPherson - AFM Consulting LLC - Newton 30 March, 2021, 15:20Be the first to give this comment the thumbs up 0 likes

This seems to be more of a network integration thing.  It's unclear, but I think Visa's network is being made to think that the transactions are legacy card transactions. There's some sort of integration with Crypto.com that's doing the transformation.  I also expect they are using the card numbers assigned to Crypto.com to enable them to automatically access the gateway they've set up.  I know Mastercard is working on the same thing.