Visa will settle fiat currency transactions on Ethereum (ETH) with USDC

Visa announced in a press release on March 29 that the company is testing a program that settles fiat money transactions using the USD Coin (USDC), Circle’s stablecoin, which is pegged 1: 1 to the US dollar.

Visa is partnering with Crypto.com, a popular cryptocurrency exchange, on this. Crypto.com already issues Visa crypto debit cards, but normally cryptocurrency transactions with these cards are first converted to fiat currency.

However, this is unnecessarily complex and expensive, Visa reports, and this will no longer be necessary with the new method. The first transaction in this new way has already been carried out together with Anchorage, the US’s first national crypto bank. Crypto.com sent USDC to Visa’s Ethereum address at Anchorage.

This development shows the increasing adoption of the crypto market. For example, BNY Mellon, the oldest bank in the US and largest custodian service in the world, will set up bitcoin (BTC) services. BlackRock, the largest asset manager in the world, has started buying bitcoin. Mastercard also announced support for crypto, and Tesla is now accepting bitcoin payments.

Visa CEO Alan Kelly recently said that crypto may become “extremely mainstream”. Cuy Sheffield, head of the crypto division at Visa, says:

“We see an increasing demand from consumers around the world to access, hold and use digital currencies, and we see the demand from our customers to be able to build products that provide this access to consumers.”

Crypto.com recently became an official sponsor of the new Aston Martin Formula 1 team and joined Visa last week: