Credit card giant Visa announced today that it will begin accepting USD Coin (USDC) to settle transactions on its payment network. The company has launched a pilot payment program with Crypto.com and plans to roll out its services to various partners later this year.
This move by the fintech giant coincides with the growing institutional acceptance of digital currencies and is not really surprising, as its MasterCard rivals began embracing the potential uses of crypto currencies earlier this year. In mid-February, MasterCard announced its plans to incorporate crypto currencies into its digital payment infrastructure, justifying that these digital tokens will become an “important part of the world of payments.”
To capitalize on the growing crypto currency user base that has largely gone unnoticed over the years, Visa will be looking to make a niche for itself in the crypto currency payments market.
Visa announced that it would also use the Ethereum (ETH) block chain to run its own nodes. This eliminates the need to convert crypto currency payments into fiat currency, which will likely lower fees for customers and merchants.
The company also stated that it had partnered with digital asset bank Anchorage to run its Ethereum addresses. Cuy Sheffield, Crypto Director at Visa , stated that: “We see a growing demand from consumers around the world to be able to access, maintain and use digital currencies and we are seeing demand from our clients to be able to build products that provide that access to consumers. ”.