Visa has announced a groundbreaking milestone: successfully processing a USDC (USD Coin) payment directly on the Ethereum blockchain. This pilot program, conducted in partnership with Crypto.com, marks a significant step toward integrating stablecoins like USDC into Visa’s global settlement infrastructure. The initiative eliminates the need for crypto-to-fiat conversion, streamlining transactions for businesses and fintechs.
Visa’s Ethereum-Based Cryptocurrency Settlement System
In a recent blog post, Visa revealed its collaboration with Crypto.com and institutional blockchain security firm Anchorage. Key details:
- How It Works: Crypto.com sent a USDC transaction to Visa’s Ethereum address, processed via Anchorage’s secure infrastructure.
- Benefits: By leveraging Ethereum, Visa bypasses traditional fiat conversions, reducing complexity for crypto-native businesses.
- Future Plans: Visa will extend this capability to partners in 2021, supporting stablecoin reconciliation and crypto wallet settlement reports.
👉 Explore how Visa is revolutionizing crypto payments
Visa’s Vision for Crypto Integration
Jack Forestell, Visa’s Chief Product Officer, emphasized:
"Crypto-native fintechs need partners who understand digital currency complexities. This initiative reflects our commitment to enabling seamless payments across all currencies—whether fiat or crypto."
Visa’s existing network processes billions daily; adding USDC settlement positions it as a bridge between traditional finance and decentralized ecosystems.
Bitcoin’s Surge and Mainstream Adoption
Following Visa’s announcement, Bitcoin (BTC) surged past $58,000, gaining 3.6% in 24 hours. This aligns with broader institutional adoption:
- Tesla: Accepts Bitcoin for vehicle purchases after a $1.5B investment.
- MicroStrategy & Square: Aggressively accumulating BTC as a treasury asset.
- PayPal & Mastercard: Enabling crypto payments for merchants and consumers.
Visa CEO Al Kelly hinted at future support for Bitcoin purchases on Visa credentials, further cementing crypto’s role in mainstream finance.
FAQs
1. How does Visa’s USDC settlement work?
Visa processes USDC transactions on Ethereum via Anchorage, eliminating fiat conversion steps.
2. Will Visa support other cryptocurrencies?
While USDC is the focus, Visa is exploring additional stablecoins and Bitcoin integration.
3. How does this impact Bitcoin’s price?
Institutional adoption (e.g., Tesla, Visa) fuels demand, often driving BTC price upward.
4. Can merchants accept crypto via Visa now?
The pilot with Crypto.com is the first step; broader rollout is expected in late 2021.
5. Is Ethereum’s scalability a concern?
Visa’s use of Ethereum highlights its potential, though Layer-2 solutions may address congestion.
👉 Discover more about crypto payment innovations
Conclusion
Visa’s embrace of USDC on Ethereum signals a pivotal shift toward crypto-friendly payment networks. With Bitcoin’s price rally and giants like Tesla and Mastercard joining the fray, 2021 is shaping up as the year of blockchain-powered finance.
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