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Visa unveils its blockchain interoperability hub

Updated: Jul 25, 2024
Published: Sep 30, 2021
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Global payments giant Visa announced a new project that aims to be a "universal adapter" for blockchains, capable of connecting multiple cryptocurrencies, stablecoins and central bank digital currencies.

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Blockchain interoperability hub will connect multiple blockchain networks

According to an official announcement, Visa's research team is working on a "Universal Payment Channel" (UPC) initiative. It is quite similar to a Layer 2 solution and will connect multiple blockchain networks so you can transfer digital assets from different protocols and wallets.

The UPC Hub will connect various blockchain networks through its universal payment channels to enable cross-border atomic transactions, for large or small amounts, whether between friends and family or between businesses.

Visa says the tool will make it easy for users to transact with others who prefer a different currency. Example: If you go out to dinner with your friends in the future, everyone at the table can use a different type of money, Visa says. Some use CBDC like the Swedish eKrona, while others prefer a private stablecoin like USDC. Visa added that such a tool could become a reality in the not-too-distant future with the UPC project.

VISA has been working on the UPC concept since 2018

The Visa research team originally began working on the UPC concept in 2018, developing an interoperability framework that works independently of the underlying blockchain mechanisms. Visa also said that leading digital payments organizations such as BIS will include the UPC study into their CPMI proceeding this year.

Another notable move by Visa into the crypto industry was its partnership with blockchain company Circle in 2020 to support the stablecoin USD Coin (USDC) on specific credit cards.

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