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Visa is making progress in bridging the gap between the new world of digital currencies and the traditional financial industry.
James Martin / CNET
Visa announced Monday that it will now allow the use of cryptocurrency to settle transactions in its payment network. USD Coin – a stable coin backed by the U.S. dollar – will be used to settle transactions with Visa on the Ethereum blockchain, according to a statement.
Visa is piloting the program with Crypto.com and has announced plans to offer USDC settlement to more partners later this year.
“Crypto-native fintechs want partners who understand their business and the complexity of digital currency form factors,” Jack Forestell, executive vice president of Visa, said in the statement. “Today’s announcement marks a major milestone in our ability to meet the needs of fintechs running their business in a stablecoin or cryptocurrency, and it’s truly an extension of what we do every day, by securely facilitating payments in all different currencies around the world. “
Visa’s pilot program eliminates the need to convert digital coins to a more traditional currency, like the US dollar, when a person pays for something using a Crypto.com Visa card. Instead, Visa will settle the transaction using USDC.
Visa said the incorporation of digital currency will remove additional costs and complexity and allow crypto-native partners to explore new business models without having to steer clear of traditional fiat currencies.
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