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Visa becomes first major payments network to support USDC coin

Updated: Jul 25, 2024
Published: Mar 29, 2021
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Traditional financial institutions are venturing into the cryptocurrency market, and no one wants to be left behind. The institutions are adopting various cryptocurrency and blockchain technologies to ensure they cater to the emerging market and its millions of customers. Visa is making such strides, and it has just supported USDC coin on its payment network.

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Visa to settle transactions in USDC coin

Visa has become the first leading payments network to adopt USDC coin and will settle transactions with the stablecoins. The company aims to forge new connections between digital and traditional currencies via the use of the stablecoin.

In a press release earlier today, the payments company stated that it is bridging the worlds of digital and fiat currencies: the use of USDC, a stablecoin backed by the USD, to settle a transaction with Visa over Ethereum. Visa added that it is piloting it with Crypto.com, a Visa partner and one of the world's largest crypto platforms. The company intends to expand the capability to more Visa partners later this year.

David Puth, CEO of Centre, which handles the licensing of USDC, is excited by this latest development. He stated that "Visa is leading the market with its innovative approach to payments in many forms. We are very impressed with their efforts. Having USDC on the Visa network is an outstanding next step in our mission to connect the world using stablecoins built on Centre standards, starting with USDC."

Jack Forestell, Visa's executive VP and chief product officer, said today's news places Visa as a company that addresses the needs of fintechs managing their business using stablecoin or cryptocurrency.

Crypto community excited by Visa's move

The cryptocurrency community became excited following the news of Visa using the USDC stablecoin to settle payments on its network. Jeremy Allaire, the co-founder and chief executive of Circle (the issuer of USDC), tweeted about this, stating that it is a major turning point in mainstream adoption of crypto.

He explained what Visa's adoption means to cryptocurrency users, stating that "A customer who has USDC in a wallet, and a card attached to their wallet (there are now dozens of these) can spend at any Visa accepting merchant, and the USDC is used to settle the transaction with Visa instead of the legacy banking system."

The deal is also beneficial to Visa as it allows them to get their money as fast as a blockchain moves funds. The company will enjoy this without reversal risk and time delays and costs of SWIFT, ACH, and others.

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