Payment industry leader Visa has announced that it will allow customers to use the cryptocurrency USD Coin (USDC) for settlement on its payment network. This makes Visa the latest major corporation to accept cryptocurrencies, following Tesla, Square, and PayPal.
USDC: A Dollar-Pegged Stablecoin
USDC is a digital stablecoin whose value is pegged to the US dollar—1 USDC equals $1. According to Cuy Sheffield, Visa's Head of Cryptocurrency, the company recognized the growing global demand among consumers to acquire, hold, and use digital currencies, prompting this strategic move.
👉 Discover how USDC is changing digital payments
Simplifying Crypto Transactions
Previously, using a Crypto.com Visa card to purchase something as simple as a cup of coffee required multiple steps:
- Convert cryptocurrency in a digital wallet to fiat currency.
- Deposit the funds into a bank account.
- Wait for the system to wire the amount to Visa for transaction settlement.
This process was not only cumbersome but also costly.
Visa's Innovative Solution
Visa’s new approach leverages the Ethereum blockchain, enabling direct spending of digital currencies without conversion to traditional fiat. The company has launched a pilot program with payment and crypto platform Crypto.com and partnered with digital asset bank Anchorage to complete its first test transaction this month. More partners are expected to join later this year.
Why Visa Is Adopting Crypto
Visa’s move aligns with a broader trend among financial institutions. Major players like BNY Mellon, BlackRock, and Mastercard have already begun integrating cryptocurrencies for investments and payments. By adopting USDC, Visa ensures it remains competitive in the evolving digital finance landscape.
Key Benefits of USDC Integration
- Faster Settlements: Eliminates intermediary steps in transactions.
- Lower Costs: Reduces fees associated with currency conversion.
- Global Accessibility: Supports seamless cross-border payments.
👉 Learn more about stablecoins and blockchain technology
FAQs
1. What is USDC?
USDC is a stablecoin pegged 1:1 to the US dollar, offering the stability of fiat with the efficiency of blockchain.
2. How does Visa’s USDC integration work?
Visa uses Ethereum’s blockchain to settle transactions directly in USDC, bypassing traditional currency conversion.
3. Which companies are involved in Visa’s pilot program?
Crypto.com and Anchorage are the initial partners, with plans to expand to more collaborators later this year.
4. Why is Visa adopting cryptocurrencies?
To meet rising consumer demand and compete with other financial institutions already offering crypto services.
5. Are there transaction limits for USDC on Visa?
Details on limits haven’t been disclosed yet, but the pilot program will likely test various thresholds.
6. Is USDC available globally on Visa’s network?
Initially limited to pilot partners, but Visa plans broader availability in the future.
Conclusion
Visa’s embrace of USDC marks a significant milestone in mainstream cryptocurrency adoption. By streamlining transactions and reducing costs, this initiative paves the way for a more inclusive and efficient digital payment ecosystem. Keep an eye on further developments as Visa expands its crypto offerings throughout 2025.
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