Visa now settles payments in USDC stablecoin on Ethereum blockchain

Quick Take

  • Visa now settles payments in the USDC stablecoin on the Ethereum blockchain.
  • Visa is initially working with Crypto.com for the new service.
  • The company hopes to launch the USDC settlement capability for other partners as well “in the year ahead.”

Visa announced Monday that it now settles payments in the USDC stablecoin on the Ethereum blockchain.

The development means Visa has become the first major payments network to use stablecoin as a settlement currency. Until now, Visa settled payments in fiat currencies only.

For its new USDC settlement capability, Visa is initially working with Crypto.com as part of a pilot program, letting the crypto firm manage its card business now entirely in digital assets.

Previously, Visa's standard settlement process required Crypto.com to settle in a fiat currency, which added cost and complexity for the firm. Now Crypto.com won't have to go through conversations and settle with Visa directly in USDC.

"The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency," said Visa's chief product officer Jack Forestell. "And it's really an extension of what we do every day, securely facilitating payments in all different currencies all across the world."

Crypto.com co-founder and CEO Kris Marszalek said the firm wants to enable "millions of consumers across the world to access and use digital currencies," and Visa's capability to "directly accept and interact with digital currencies" helps enable it to maximize the benefits of digital currencies.

Visa's settlement agent for the USDC capability is crypto bank Anchorage. That means Crypto.com sends USDC to Visa's Ethereum address at Anchorage.

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