Payment giant Visa announced on Monday its partnership with digital asset bank Anchorage to streamline cryptocurrency transaction settlements using USD Coin (USDC). This collaboration enables USDC transfers via Crypto.com to Visa's Ethereum address. Following the news, Bitcoin surged past $58,000, while Ethereum rebounded to $1,800.
Key Developments in Visa's Crypto Integration
- USDC Adoption: Visa will now permit USDC (a $11B market cap stablecoin) for settlement on its payment network, eliminating traditional fiat conversion hurdles.
- Partnership Model: Crypto.com initiated the first USDC test transaction to Visa’s Ethereum address managed by Anchorage, with plans to expand to other partners.
- Operational Efficiency: Direct USDC payments bypass legacy banking intermediaries, reducing costs and processing time for crypto-focused businesses.
How Visa’s USDC Settlement Works
- Traditional Process: Crypto.com previously converted crypto to fiat for Visa settlements, incurring fees and operational delays.
- New Solution: USDC allows direct Ethereum-based settlements, cutting out cash conversions and simplifying cash flow management.
Jack Forestell, Visa’s Chief Product Officer, stated: "Today’s announcement reflects our commitment to bridging traditional finance with digital currency ecosystems securely."
Market Impact and Industry Trends
- Bitcoin (BTC): Rose 4.5% to $58,405 post-announcement, currently trading at $57,270.
- Ethereum (ETH): Gained 7.6%, peaking at $1,840 before stabilizing at $1,790.
- Growing Demand: Visa’s Q1 earnings highlighted plans to expand crypto payment solutions, with partners like BlockFi and Bitpanda already issuing crypto-backed Visa cards.
👉 Explore how stablecoins are transforming global payments
FAQs About Visa’s USDC Integration
Q: What is USDC?
A: A fully regulated stablecoin pegged 1:1 to the US dollar, issued by Circle and Coinbase’s Centre Consortium.
Q: How does this benefit merchants?
A: Eliminates costly fiat conversions and accelerates settlement times from days to minutes.
Q: Will Visa support other cryptocurrencies?
A: While USDC is the focus, Visa acknowledges evolving demand and may expand offerings.
Q: Is this available globally?
A: Initial trials are limited to select partners, with broader rollout expected in 2024.
👉 Discover crypto payment solutions for your business
Future Outlook
Visa’s move signals accelerating institutional adoption of stablecoins, with potential to:
- Reduce cross-border payment friction.
- Enable real-time treasury management for crypto-native firms.
- Drive mainstream acceptance of blockchain-based settlements.
Note: All cryptocurrency prices are subject to market volatility. Data reflects time of reporting.