A fresh announcement from Visa has moved markets today. The payment processing giant let news break that it is actively trialing the use of stablecoins in the settlement of transactions on its network.
Settling in USDC
For the time being, this capability is being trialed in a pilot program involving both Crypto.com and Anchorage. The stablecoin of choice is none other than USDC – the second largest coin of its type available in today’s markets.
“Visa’s standard settlement process requires partners to settle in a traditional fiat currency, which can add cost and complexity for businesses built with digital currencies. The ability to settle in USDC can ultimately help Crypto.com and other crypto native companies evaluate fundamentally new business models without the need for traditional fiat in their treasury and settlement workflows. Visa’s treasury upgrades and integration with Anchorage also strengthen Visa’s ability to directly support new central bank digital currency (CBDC) as they emerge in the future.”
Visa indicates that its choice of USDC was predicated on 3 requirements – Demand, stability, and security. All three of which were satisfied by USDC.