Visa has announced that it will allow the USD Coin cryptocurrency backed by the dollar to be used for payments in its payment network. The platform for conducting transactions with cryptocurrency Crypto.com became a partner of Visa.
The world’s largest payments company Visa (V) on Monday announced support for the USD Coin stablecoin cryptocurrency as a new type of settlement currency in its payment network.
Stablecoin USD Coin (USDC) is a stable cryptocurrency, the value of which is directly pegged to the US dollar.
One of the world’s largest crypto platforms Crypto.com has become a partner of Visa – its application allows you to buy, exchange, send and track cryptocurrency.
In a press release, Visa said it plans to offer USDC settlements to additional partners later this year.
Why is it important?
For Visa, this step is very significant, given the high popularity of cryptocurrencies among the population and the incredible growth rates of fintech companies that use cryptocurrency today and are looking for opportunities to make transactions using it.
Cryptocurrency services have already been implemented by Visa’s main competitor – Mastercard (MA), PayPal payment company (PYPL), large investment company BlackRock, BNY Mellon bank and others.
Jack Dorsey’s payment company Square (SQ) has invested over $ 200 million in cryptocurrency.
The global electric vehicle leader Tesla (TSLA) has invested $ 1.5 billion in Bitcoin, the world’s largest cryptocurrency. Gene. director Elon Musk said he plans to sell Tesla electric vehicles for bitcoins in the near future.
“Fintech companies using cryptocurrency need partners who understand their business and the complexity of digital currency form factors,” said Jack Forestell, executive vice president and chief product officer at Visa. “Today’s announcement marks an important milestone in our ability to meet the needs of fintech companies running their stablecoin or cryptocurrency businesses, and in fact it is an extension of what we do every day, reliably facilitating payments in all currencies around the world.”
How it works?
The companies created a joint Visa MCO card, thanks to which, Crypto.com has the opportunity to offer its customers to convert their cryptocurrencies to fiat and spend.
Thus, the Crypto.com client converts their cryptocurrency into US dollars and for Visa the settlement is made in traditional fiat currency.
In order to buy and sell cryptocurrencies for its clients using the Visa network, Crypto.com uses the Anchorage suite of application programming interfaces (APIs).
More importantly, with API-Anchorage, Visa’s next step could be to build crypto services at traditional banks.
“Leveraging its global presence, partnership approach and trusted brand, Visa is committed to adding value to the ecosystem and making cryptocurrencies safer, more useful and applicable for payments,” Visa said in a Monday message.
The Visa stock chart shows a picture of volatile trading since early 2021, but at the same time, the stock has risen 26.4% over the past 12 months. Visa shares rose marginally in early trading on Monday.