In the latest evidence of cryptocurrency acceptance, Visa has announced it will accept USD Coin to settle transactions.
USD Coin is a cryptocurrency that is backed by the US dollar, and operates on the Ethereum blockchain. Visa now becomes one of the first major financial firms to accept cryptocurrency as a form of payment.
“Crypto-native fintechs want partners who understand their business and the complexities of digital currency form factors,” said Jack Forestell, executive vice president and chief product officer, Visa. “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 traditionally requires a fiat currency for settlement payments, but it hopes that supporting USD Coin will remove a layer of cost and complexity for digital currency-based businesses.
Visa has partnered with Anchorage, “the first federally chartered digital asset bank and an exclusive Visa digital currency settlement partner,” and “has launched a pilot that allows Crypto.com to send USDC to Visa to settle a portion of its obligations for the Crypto.com Visa card program.”