Visa will offer USDC Stablecoin based Transaction Settlements

Visa is testing capability to settle transactions with Visa over Ethereum and USDC stablecoin.

The announcement was made today where Visa is piloting the USDC based settlement with the Crypto.com platform.

The current pilot allows Crypto.com to send USDC to Visa to settle a portion of its obligations for the Crypto.com Visa card program. Centre Consortium oversees implementation is USD Coin (USDC), a stablecoin, and an ERC-20 token.

Executive Vice President and Chief Product Officer, Visa, Jack Forestell, said, "Crypto-native fintechs want partners who understand their business and the complexities of digital currency form factors. 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."

Co-founder and CEO, Crypto.com, Kris Marszalek, said, "We’ve seen record-breaking growth in our business and the broader crypto ecosystem over the last year. To continue accelerating the world’s transition to cryptocurrency, we need partners who understand the opportunity and the tools that will help us get to market faster and more efficiently. Having been a Visa partner for several years, we’re excited to deepen that relationship through our global agreement and to pioneer an exciting world-first in stablecoin payments."

Visa has already set up its digital currency settlement mechanism within its existing treasury infrastructure. For digital currency settlement, Visa has exclusively partnered with Anchorage, the first federally chartered digital asset bank, notes the announcement. Anchorage platform is purposely built for Visa to support crypto products.

Visa’s treasury upgrades and integration with Anchorage will allow Visa to support any new central bank digital currency (CBDC) when they come into existence.  

"Having USDC on the Visa network is an outstanding next step in our mission to connect the world using stablecoins built on Centre standards, starting with USDC", says David Puth, CEO of Centre.