VISA Integrates USDC into Global Payment Network
Credit card giant VISA announced yesterday that it will incorporate the USD Coin (USDC) stablecoin into its global payment network covering 60 million merchants. This move allows clients to directly use USDC for transaction settlements. USDC is issued by the CENTRE consortium, a collaboration between cryptocurrency exchange Coinbase and crypto payment company Circle.
Key Partnerships and Pilot Program
VISA has partnered with:
- Cryptocurrency platform Crypto.com
- Digital asset custodian Anchorage
to establish an experimental project. The first successful transaction involved transferring USDC from Crypto.com to an Anchorage Ethereum address this month. VISA plans to expand these services to more partners later this year.
The Breakthrough in Digital Payments
Traditionally, when users made purchases with Crypto.com's Visa card:
- They had to convert cryptocurrencies to fiat currency
- Deposit funds into bank accounts
- Wait for settlement with VISA after transaction completion
This process increased operational costs and added unnecessary complexity by requiring digital-to-fiat conversions.
Blockchain-Based Settlement Innovation
VISA's new approach fundamentally changes this model by:
- Conducting USDC settlements directly on the Ethereum blockchain
- Eliminating fiat currency conversion entirely
- Creating seamless integration between digital payments and cryptocurrencies
Cuy Sheffield, VISA's Senior Director and Head of Cryptocurrency, stated:
"We see growing global consumer demand to access, hold, and use cryptocurrencies. Our clients want us to deliver services that provide this access to consumers."
Background and Future Implications
VISA first hinted at connecting its payment network to USDC in December 2020. While the company doesn't custody USDC directly, it collaborates with Circle to integrate USDC software into card issuer platforms, enabling USDC payments.
The Efficiency Advantage
Current payment statistics show:
- VISA processes $120 trillion annually via checks/wire transfers
- Traditional methods can cost up to $50 per transaction
- USDC transactions on Ethereum complete in ~20 seconds
- Near-zero transaction fees
This efficiency makes USDC settlements an attractive alternative for merchants seeking instant payment options.
Frequently Asked Questions
What is USDC?
USDC is a regulated stablecoin pegged 1:1 to the US dollar, issued by CENTRE consortium members Coinbase and Circle.
How does VISA's USDC integration work?
VISA enables direct USDC settlement on Ethereum without fiat conversion, simplifying transactions between crypto wallets and merchants.
Which companies are currently using this service?
The initial pilot involves Crypto.com and Anchorage, with more partners expected later in 2023.
👉 Learn more about stablecoin adoption
Why is this integration significant?
It represents a major step toward mainstream crypto adoption by eliminating traditional banking intermediaries in payment settlements.
How fast are USDC transactions compared to traditional methods?
USDC settlements complete in about 20 seconds versus days for conventional wire transfers, with minimal fees.
Will VISA support other cryptocurrencies?
While currently focused on USDC, VISA has shown increasing interest in broader crypto payment solutions.