The global payment company Visa has on Monday announced that it has started settling payments in the USDC stablecoin on the Ethereum blockchain.
This new development makes Visa the first major payment platform to use stablecoin as a settlement currency.
This initiative will be implemented in collaboration with Crypto,com. The exchange will fully manage its card business in digital currencies.
Visa’s chief product officer Jack Forestell noted:
“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.”
According to the co-founder and CEO of Crypto.com, the firm is on a mission of enabling millions of customers across the world to access and use cryptocurrencies.
He added that for Visa to directly accept and interact with digital currencies is a significant means of expanding the reach of cryptocurrencies in a way that will greatly benefit its enormous user base.
The report added that crypto bank Anchorage is Visa’s settlement agent for the USDC capability, which implies that Crypto.com will be sending USDC to Visa’s Ethereum address at Anchorage.
Reacting to the new development, co-founder and president of Anchorage, Diogo Mónica said:
“Visa came to us in 2019 with an idea—make secure, efficient, and seamless settlement payments possible in digital currency by linking Visa’s treasury with Anchorage’s custody platform. This would give the next generation of crypto native issuers the option to directly settle with Visa in a digital currency over a public blockchain.”
Mónica further stated that Visa sees this new development as one small step forward for its plan to expand its settlement platform, but a giant step to incorporate cryptocurrencies in its business.