Visa is stepping up its support for cryptocurrencies, disclosing on Monday that it will now allow the use of stablecoin (USDC) to settle transactions on its payment network.
According to a Reuters report, Visa kicked off the project by launching a pilot program with Crypto.com, a payments and crypto platform, and plans to extend the opportunity of settling payments with cryptocurrency to more partners later this year.
Visa disclosed that it had completed its first pilot transaction earlier this month. Digital asset bank Anchorage received USDC’s from Crypto.com using Visa’s Ethereum address with Anchorage.
The USD Coin (USDC) is slightly different from other digital currencies since it’s a stablecoin that has its value pinned directly to the U.S. dollar and so the value does not fluctuate.
Visa’s decision to roll out this payment option makes it easier for the company to process payments made by users of the Crypto.com Visa card.
To pay for goods and services using the card, Visa usually converts a customer’s cryptocurrency into traditional money first. The cryptocurrency, now converted to traditional fiat currency, is deposited into a bank account to be sent to Visa at the end of the day to settle any transactions, including costs and expenses acquired along the line.
However, with the added feature, Crypto.com no longer needs to convert customer funds into traditional money before a final settlement takes place.
Cuy Sheffield, head of Crypto at Visa said, “We see increasing demand from consumers across the world to be able to access, hold and use digital currencies and we’re seeing demand from our clients to be able to build products that provide that access for consumers.”
The latest developments continue Visa’s foray into cryptocurrency and blockchain-related projects.
In a similar development, Coinfomania reported that Visa was hiring blockchain developers with experience in Ethereum, XRP, and/or Bitcoin blockchain to help in developing a global blockchain payment solution. Visa subsequently launched the Visa Crypto API, making it possible for fintech firms to add cryptocurrency offerings to their operations.
