Leading credit card provider Visa (NYSE: V) is piloting a program that will allow its partners to use the Ethereum (ETH) blockchain to settle a fiat currency transaction.
3 reasons why the price of StormX (STMX) has risen 2,800% in 2021
In an announcement Monday, Visa said it will partner with exchange and card issuer Crypto.com to offer a cryptocurrency settlement system for fiat transactions later this year. Visa partners will be able to exchange USD Coin (USDC) through the credit card payment network to settle transactions made in fiat currency.
According to Visa, its standard settlement process requires partners to send fiat currency via wire transfer, which “can add cost and complexity for businesses focused on digital currencies.” The pilot would apparently allow Crypto.com to send USDC to Visa’s Ethereum address to settle some of the transactions under the exchange’s Visa card program by linking Visa’s treasury with the digital asset platform, Anchorage.
Visa plans to allow its partners to settle fiat transactions with cryptocurrencies