Visa announces another strategic service for bridging the gap between digital and fiat currencies. The payment giant will settle transactions in USD Coin (USDC).
It’s the first of its kind for the payment industry. Visa will use USDC, a US dollar-backed stablecoin, to settle transactions. The company will use the Ethereum blockchain for these settlements. Crypto.com is the primary partner of Visa in this new service. The American company plans to partner with more crypto-based companies later this year.
Using Stablecoins for Fiat Transactions
Connecting the two worlds of fiat and digital currencies is a significant milestone for the cryptocurrency world. It shows the importance of new payment solutions and their ability to ease many of the day-to-day actions. When giants like Visa, PayPal, and Mastercard show their will to use and support cryptocurrencies, we can expect faster growth for the whole industry.
Stablecoins play a vital role in this connection. They have less volatility, and mainstream users trust them more. Visa has shown its will to use and support stablecoins on numerous occasions. The latest announcement to settle transactions with USDC coin shows serious plans for growing the services.
Visa aims to provide comprehensive payment solutions. It has acknowledged the importance of cryptocurrencies and plans to expand services. Supporting digital currencies for settlement shows its plan to increase the use-case for cryptocurrencies and similar assets. The American company has a global presence with a reputable brand. These can help the company promote digital-based services easier and faster.
Anchorage is one of the most important partners of Visa in cryptocurrency services. The federally chartered digital asset bank is Visa’s exclusive digital settlement partner. Visa has used the partnership with Anchorage to provide a settlement option to Crypto.com. Jack Forestell, executive vice president and chief product officer, Visa, said about the collaboration with Crypto.com:
“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.”
The new service from Visa and Crypto.com helps crypto-based companies more than any other player. Settling payments with fiat currencies is the standard way in Visa’s current services, not suitable for crypto-based companies. Companies like Crypto.com can benefit from new services and create better business models without settling with fiat currencies.