Visa just used the Ethereum blockchain to settle a stablecoin payment
Visa has boasted using the Ethereum blockchain to settle a stablecoin payment during a recent pilot.
According to a press release, the pilot allowed service provider Crypto.com to settle part of its card accounts in dollar-backed cryptocurrency USD Coin (USDC).
- Visa usually settles in fiat currencies but crypto-native companies want to use digital assets instead.
- Settling in USDC allows Crypto.com to avoid exchanging crypto for fiat.
- The pilot preps Visa for the potential advent of central bank digital currencies CBDC in the near future.
“Billions of dollars are cleared and settled each day with Visa’s settlement service — […] but what about fintechs and neo-banks that run their business in digital currencies like Bitcoin, Ethereum, or USDC?” reads a promotional blog post.
Federally chartered digital asset bank Anchorage helped out with APIs to stream the USDC to Visa’s Ethereum address, which Anchorage controls.
Visa said it hopes to rollout USDC settlement for its other crypto partners “in the year ahead.”
[Read more: Nevada finally greenlights weed stablecoin pilot — but experts doubt it]
The price of Bitcoin and Ethereum jumped shortly after news of the crypto pilot broke. Bitcoin rose up to 5% and Ethereum up to 9%.
However, the same can’t be said for Visa’s share price. The company’s stock has so far traded evenly for the day and the entire year-to-date.