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Visa conducts first transaction using USD Coin stablecoins
Visa Inc announced on Monday that in the near future, its payment network will be able to carry out transactions in USD Coin (USDC) stablecoins, whose value is pegged to the US dollar. Ethereum open source blockchain will be used for transactions.
To this end, Visa has launched a pilot program in collaboration with the cryptocurrency platform Crypto.com. By the end of the year, the USDC payment option will become available to a wider range of Visa partners, according to a press release.
“We see a growing demand from consumers around the world to be able to access, store and use digital currencies, and we see a demand from our customers to create products that provide such access to consumers,” said Cuy Sheffield, head of Cryptocurrency Department at Visa.
In case the client decides to use the Crypto card.com Visa for payments, for example, coffee, the digital currency stored in the cryptocurrency wallet will instantly be converted into regular currency. Cryptocurrency wallet will deposit fiat currency into bank account. At the end of the day, Visa will summarize and approve all transactions in addition to normal transactions, increasing the cost and complexity of making payments.
Visa says it is also partnering with digital asset bank Anchorage. Its first stablecoin transaction took place on its payment network this month — Crypto.com sent USDC to Visa address on Ethereum blockchain in Anchorage.