Following Mastercard, Visa announces plan to allow payment settlements using crypto

Global payment technology company, Visa, has announced its decisions to accept payments settlements via cryptocurrencies.


According to the report, settlement in the context refers to the daily exchange of funds between Visa’s issuing and acquiring partners over VisaNet to exchange value for cleared and settled transactions. And not the movement of funds from individual consumer accounts.

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This is coming after MasterCard announced in February that henceforth, cryptocurrencies would be accepted on their network.


Visa, in a statement on Monday, said it will use USD Coin (USDC), a stablecoin backed by the US dollar, to settle a transaction with Visa over Ethereum, one of the most actively used open-source blockchains.


The firm also made it known that it would work with Anchorage, the first federally chartered digital asset bank and an exclusive Visa digital currency settlement partner, to launch a pilot that allows Crypto.com to send USDC to Visa to settle a portion of its obligations for the Crypto.com Visa card program.

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In the statement;

“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 statement reads.

“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.”


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Jack Forestell, executive vice president and chief product officer of Visa while reacting to the development said;

“Crypto-native fintechs want partners who understand their business and the complexities of digital currency form factors,


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Kris Marszalek, co-founder and CEO of Crypto.com also commented;

“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,” he said.

“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.”
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