Global payment giant Visa announced that its partners can now transact using the USDC cryptocurrency as an alternative to fiat currency.
Visa has successfully conducted a pilot test for cryptocurrency-based payments in collaboration with crypto exchange Crypto.com. The test involved processing transactions with USD Coin (USDC), a stablecoin pegged to the US dollar, via the Ethereum blockchain.
Key Details of the Pilot
- Partnership: Visa worked with Crypto.com, a crypto exchange and card issuer.
- Method: USDC payments were processed on Ethereum.
- Banking Integration: Visa used an Ethereum wallet address hosted by Anchorage, a regulated crypto bank, to receive USDC directly from Crypto.com.
Why This Matters
Previously, Crypto.com had to convert crypto payments back to fiat before transferring funds to Visa—a process that added complexity, cost, and delays. By accepting USDC directly, Visa streamlines transactions, reducing overhead for all parties involved.
Executive Insights
Cuy Sheffield, Visa’s Head of Crypto, stated:
"We’re seeing growing global demand for digital currencies—whether to access, hold, or spend them. Our goal is to build solutions that meet these needs."
Jack Forestell, Visa’s Chief Product Officer, added:
"Crypto-native companies seek partners who understand their business models and the intricacies of digital payments. Accepting USDC is a milestone in Visa’s effort to help fintech firms manage operations with stablecoins or cryptocurrencies."
Future Plans
Visa confirmed it will expand support for partners transacting in cryptocurrencies like Bitcoin (BTC), Ether (ETH), and USDC.
Market Impact
Following the announcement, Crypto.com’s native token (CRO) surged 10%, from $0.02014 to $0.02218 on FTX.
Broader Context
This news follows Tesla’s recent decision to accept Bitcoin payments, signaling growing corporate adoption of digital currencies.
FAQ Section
Q1: What is USDC?
A1: USD Coin (USDC) is a stablecoin backed 1:1 by US dollar reserves, enabling fast and low-cost crypto transactions.
Q2: How does Visa’s USDC integration benefit businesses?
A2: It eliminates fiat conversion steps, reducing costs and settlement times for crypto-based transactions.
Q3: Will Visa support other cryptocurrencies?
A3: Yes—Visa plans to add support for Bitcoin, Ether, and more in the future.
👉 Explore crypto payment solutions
👉 Learn about stablecoin adoption