International payments technology company Visa said on March 29 it will unlock the option of using USD Coin (USDC) to settle transactions on the platform.
Visa teamed up with cryptocurrency and payment operations provider Crypto.com to launch the pilot project. The company aims to offer more firms to trade USDC over its platform to clear transactions done in fiat currency.
USDC is a stablecoin backed by 1 USD, which functions on the Ethereum and Algorand blockchains. As stated by Visa, regular settlement suggests sending fiat money through wire transfer that is costly and complex for firms dealing with digital currencies.
The pilot works this way: Crypto.com sends USDC to Visa’s Ethereum address to settle a part of the activities controlled by the platform's Visa card program, which in its turn connects Visa’s treasury with the digital asset protocol Anchorage.
The news is significant since it's the first time when a major financial company allows stablecoin transactions thus combining fiat and crypto.