Visa conducts first settlement transaction in USD Coin
(30 March 2021 – United States) 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 pilot 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.
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.
Visa’s use of the Ethereum blockchain negates the need to convert digital coins into traditional money for the transaction to be settled.
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.”
Visa joins MasterCard, Blackrock and BNY Mellon who have also accepted digital coins.