News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
Bitcoin (BTC) price is up around 4% in the past two hours after Visa (NYSE: V) announced it will allow the USD Coin (USDC) cryptocurrency to settle transactions on its payment network.
In what appears to be one of the biggest steps towards a mass acceptance of digital currencies by the traditional financial industry, Visa said it has launched a pilot program with the cryptocurrency platform Crypto.com.
“Visa’s standard settlement process requires partners to settle in a traditional fiat currency, which can add cost and complexity for businesses built with digital currencies. The ability to settle in USDC can ultimately help Crypto.com and other crypto native companies evaluate fundamentally new business models without the need for traditional fiat in their treasury and settlement workflows. Visa’s treasury upgrades and integration with Anchorage also strengthen Visa’s ability to directly support new central bank digital currency (CBDC) as they emerge in the future,” Visa said in a statement.
If successful, the program will expand to include other partners as well, Visa said.
“Crypto-native fintechs want partners who understand their business and the complexities of digital currency form factors. The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency, and it’s really an extension of what we do every day, securely facilitating payments in all different currencies all across the world,” said Jack Forestell, executive vice president and chief product officer, Visa.
A first transaction was completed this month, Visa says, with Crypto.com sending USDC to Visa’s Ethereum address at the digital asset bank Anchorage, which serves as an exclusive Visa digital currency settlement partner.
“We’ve seen record-breaking growth in our business and the broader crypto ecosystem over the last year. To continue accelerating the world’s transition to cryptocurrency, we need partners who understand the opportunity and the tools that will help us get to market faster and more efficiently. Having been a Visa partner for several years, we’re excited to deepen that relationship through our global agreement and to pioneer an exciting world-first in stablecoin payments,” said Kris Marszalek, a co-founder and CEO of Crypto.com.
Ethereum (ETH) price also popped over 4% on today’s news while Crypto.com’s (CRO) has gained about 8%.