USDC settlement was successful on the Ethereum blockchain. The company is setting a series of updates to its platform to streamline payments with cryptocurrencies.
The international financial services corporation, Visa, announced that it had settled its first transaction with the stablecoin USDC. The operation is part of a pilot plan in which its partners Crypto.com and digital asset bank Anchorage also took the protagonist part.
Visa received the funds at an address owned by it on the Ethereum (ETH) network from Crypto.com. Anchorage played the role of custodian of the cryptocurrencies, although without disclosing the transferred amount.
The tests are under development to update Visa’s settlement system, aiming for greater integration with the bitcoin ecosystem. The company is taking these first steps with entities with which it has already established alliances before. One of them is Crypto.com, a company that issues a debit card for users of its exchange.
Visa Wants to Roll out this Capability to Other Partners in the Coming Year
“It is a small step forward for Visa’s settlement platform, a giant step for the integration of traditional cryptocurrencies and fiat. Following further testing and additional discussions with customers, partners, and members of the regulatory community, we expect to roll out this capability to other partners in the coming year,” Visa noted in the document.
Visa’s vision focuses, for the moment, on stablecoins such as USDC, a crypto asset that it will use as “raw material” for the improvements it intends to make to its system. However, it is still unclear that shortly, they will get involved with Bitcoin or other cryptocurrencies since they brought a vote of confidence to public networks for the transfer of value.
What a company like VISA did make clear that the tests also have another purpose? To measure the implications for adjusting to central bank digital currencies (CBDC) in the future. Visa also highlighted that the company embraced the commitment to be supporting these initiatives to integrate them into the existing payments environment.
Visa is Embracing Cryptocurrencies, but there is Still a Long Path to Walk
The multinational company, VISA, is one of the biggest entities in the finance world that has gradually approached Bitcoin and cryptocurrencies in general. Visa has a curious approach to stablecoins as a way to avoid market volatility.
The corporation is seeing stablecoins as one of the best payment innovations. Visa also revealed the seven points that would define its strategy with Bitcoin and other crypto-assets.
In December 2020, Visa also allied with Circle, the issuer of USDC. The intention is for the cryptocurrency to have exposure on the payment processor’s network, seeking consolidation with today’s announcement.
Visa assumes its business model, in which the company gains the ability to complete the integration of new alternatives such as cryptocurrencies. VISA’s primary goal is to bring value to blockchains through alliances and integrate efficient payment solutions to their merchants.
By: Jenson Nuñez