Visa allows payment settlements using USD coin

29 Mar, 2021 23:19
source: Singularity Financial

Singularity Financial Hong Kong March 29, 2021 – Bitcoin is rising on Monday, near $58,000 at press time, in the wake of payments giant Visa announcing support for USD coin, a stablecoin whose value is pegged to the U.S. dollar.

USDC is the second-biggest stablecoin, with a market capitalization of about $11 billion, as per data source CoinGecko. According to Reuters, by adding support for the stablecoin, Visa has stripped out the need to convert the cryptocurrencies into traditional money for settling transactions on its network.

Visa’s move comes as major finance firms including BNY Mellon, BlackRock Inc and Mastercard Inc have embraced some digital coins, sparking predictions that cryptocurrencies will become a regular part of investment portfolios.

The latest Visa news comes five days after Tesla’s CEO Elon Musk tweeted that the electric maker would accept bitcoin as payment for its cars, marking a significant step forward for the cryptocurrency’s use in commerce.

“We see increasing demand from consumers across the world to be able to access, hold and use digital currencies and we’re seeing demand from our clients to be able to build products that provide that access for consumers,” Cuy Sheffield, head of crypto at Visa, said.

Visa said it has partnered with digital asset bank Anchorage and completed the first transaction this month — with Crypto.com sending USDC to Visa’s Ethereum address at Anchorage. This move will remove hurdles for crypto firms that previously had to switch between crypto and fiat to interact with Visa.