Visa now supports cryptocurrency transactions with direct acceptance of payments in USDC.
Visa Leverages Ethereum to Settle Payments
While the company has supported digital currencies in the past, working closely with Crypto.com and Anchorage, any transaction made with crypto was converted into fiat before being settled.
After much speculation, it is now official: Visa will settle digital currency transactions on the Ethereum blockchain directly, using the USDC stablecoin.
This is the logical continuation of the company’s increased involvement with the crypto space. The company had already started cooperating with USDC to enable cryptocurrency payments in December, but those were still settled through fiat.
The company announced that the first successful transaction settlement took place this month. Crypto.com sent USDC to Visa’s Ethereum blockchain address at Anchorage, an institutional blockchain security firm.
In their blog post, the company defined this as:
“One small step forward for Visa’s settlement platform, one giant step forward for the integration of digital and traditional fiat currencies.”
Disclosure: The author held ETH at the time of press.