Visa is partnering with Crypto.com to launch a pilot program to integrate settlements in the USD Coin, a stablecoin whose value is pegged to the US dollar.
March 29, 2021 | AtoZ Markets – Credit card provider, Visa is launching a pilot program that would allow its partners to settle fiat transactions on the Ethereum blockchain.
According to a press release from the company, the new program is the result of a collaboration with Crypto.com.
Visa to Start Settling Transactions In USDC
Through the new program, the credit card issuer’s partners will have the ability to exchange USD Coin (USDC) through its payments network. Crypto.com will send USDC to Visa’s Ethereum address as a way of settling some of the transactions that have been sent through Crypto.com’s Visa card program. To facilitate this process, Visa’s treasury will be linked with Anchorage, a federally-chartered crypto bank.
Visa is seeking to make the system available to Fintech companies and neobanks that deal in cryptocurrency in particular, in USDC, Bitcoin (BTC) and Ether (ETH). As per CoinTelegraph, the company “reports [that] ‘billions of dollars’ in fiat are involved in clearing and settling transactions daily.” The use of the Ethereum blockchain could potentially cut down on some of these costs.
Jack Forestell, Visa’s Chief Product Officer, said in an announcement that: “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.”
The announcement of the pilot program follows Visa’s announcement that it would be partnering with Crypto.com earlier this month. Through the partnership, Crypto.com is expanding the availability of its cryptocurrency debit card.
When the partnership was launched, Crypto.com said that it would be offering a fiat lending program that would allow cardholders to use their crypto holdings as collateral for fiat loans. These funds can be spent on merchant platforms that support Visa payments.
Notably, Bitcoin prices have risen by nearly $2,000 since the report on Visa’s decision to allow the use of USDC to settle transactions on its payment network. At the time of writing, the BTC/USD pair is trading at $57,936, up 3.11% in the last 24 hours.
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