Visa Inc. has introduced a program that is equipped to allow access to crypto platforms for settling their crypto trade transactions. However, for conducting crypto transactions, trading platforms have to ensure that transactions are done on the basis of US dollar-backed stablecoins.
It was announced by Visa that now the crypto transactions can be settled at Inc. through the use of USD Coin. USD Coin, which is widely known as USDC, will be acceptable at Visa for the purposes of crypto transactions. It was notified by Visa that the decision of USDC integration has been made to provide access to crypto trading platforms. Similarly, the platform will also be made available for digital wallets belonging to the individual customers, informed Visa.
While the merchants at Visa do not accept digital coins such as Bitcoin, but they are open to digital wallets and stablecoins. For this purpose, a crypto-purpose-built visa card has also been established by Visa Inc. These cards allow their holders to utilize facilities such as settlement of payments and holding crypto assets.
Through the inauguration of a stable program, Visa’s customers would not be required to convert their digital assets into traditional currencies. However, they will be allowed to settle their payments through stablecoins without the need for conversion.
Similarly, crypto platforms that are involved in the conversion of crypto to fiat, would be able to identify complexity, time, and cost. MarketWatch’s Head of Crypto, Cuy Sheffield told that many of these platforms usually pay salaries to their employees through crypto-assets. However, he informed that since the crypto balance is maintained by companies themselves, therefore, they do not require bank accounts. Resultantly, Visa services were not available to them until now, said Sheffield.
With this move, another important development has taken place within Visa Inc. Soon after the announcement, the value of Visa’s shares in the market have soared by about 0.7%.
For the launching of its pilot program for USDC, it was told that Visa has partnered with Crypto.com. The blockchain network adopted for the initiative was informed to be Ethereum.
Visa also informed that USDC has been integrated for several reasons. One important reason apprised by Visa was USDC’s demand in the crypto market. In addition, USDC is considered the most secured type of crypto amongst other cryptocurrencies. Furthermore, the base value of USDC is relatively more stable than any other digital assets.
In the meanwhile, Sheffield further explained that for the time being only USDC has been integrated. However, in the future, those stablecoins which have been issued by centrally owned banks such as CBDC too will be facilitated. But the induction of CBDC is not the priority of visa at this time.
But what is important for anyone to note is that Visa has shown its willingness to remain available for further crypto partnerships.