Visa takes leap in settling transactions via USDC stablecoin

Payments giant Visa says it’s allowing transactions to settle using cryptocurrency USD Coin (USDC), a stablecoin whose value is tied to the U.S. dollar.

Why should we care?
Visa’s efforts to settle transactions via USDC marks a milestone for legacy financial players’ acceptance of cryptocurrency as an integral component of the traditional financial services ecosystem. The settlement effort through USDC is the result of a partnership with Crypto.com, and the company says it plans to offer it to other partners later this year. Crypto.com reportedly sent a USDC stablecoin transaction to an account at Anchorage, the first federally chartered digital asset bank and exclusive Visa digital currency settlement partner, under Visa’s name. Visa’s usual settlement process requires partners to settle in a traditional fiat currency, which can add cost and complexity. The new method, which is built on the ethereum blockchain, removes the requirement to convert digital currency into fiat currency in order for the transaction to be settled. Visa has been moving quickly on crypto partnerships, including through the provision of crypto companies with resources and Visa cards. Examples include BlockFi, Fold, Bitpanda, and others. “The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency,” said Jack Forestell, executive vice president and chief product officer at Visa.