Visa, a credit card and payments giant, is launching a pilot program to help its partners settle fiat transactions on the Ethereum blockchain. The new program is the result of allying with Crypto.com. Visa advocated that it would enable USD Coin (USDC) stablecoin to settle transactions on its payment network. Moreover, USDC is a stablecoin pegged 1:1 to the U.S. dollar. According to the announcement, Visa consumed the last year allowing digital currency settlement capacity in its current infrastructure.
The U.S. first federally chartered digital asset bank, Anchorage, will assist the pilot program launched with Crypto.com. Via the new program, the credit card issuer’s associates will have the capability of exchanging USD Coin (USDC) by its payments network. Crypto.com will transfer USDC to Visa’s Ethereum address as a way of resolving some of the transactions carried via crypto.com’s Visa Card program. The trio performed the first transaction earlier this month, with Crypto.com transferring USDC to Visa’s Ethereum address at Anchorage.
Visa to Expand the New System to Fintech Companies and Neobanks
Furthermore, Visa aims to make the new system accessible to Fintech companies and neobanks that manage cryptocurrency, specially USDC, BTC, and ETH. These efforts are a part of the continuing collaboration between Visa and Crypto.com. Users of the crypto platform may obtain a Visa card for staking a particular amount of Crypto.com’s native token (CRO). After acquiring the card, users can originate regular payments and top-up their balance by purchasing more CRO. Until now, acquisitions made with the Crypto.com Visa card had to transform CRO into fiat money.
The user’s Crypto.com wallet installed conventional fiat currency in a bank account, which was then flashed to Visa at the end of the day to complete the transaction. Nevertheless, following the development today, this additional cost will reduce, as the payment company now allows cryptocurrency (i.e., USDC) directly. Crypto.com declared a partnership with Visa previously this month. The exchange would accompany the Visa network and extend the range of its crypto debit card. At the time, the company elucidated that it would be rolling out a fiat lending program. It will enable cardholders to employ their crypto holdings as collateral for fiat loans, funds that users could use in merchant platforms that promote Visa payments.
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