Visa has officially announced the first transactions settled with Visa in USD Coin (USDC).
USDC is a regulated stablecoin pegged to the US dollar, and issued by Circle and Coinbase, and as such is widely used in the crypto sector. It is the second-largest stablecoin in the world in terms of market capitalization, preceded only by USDT, and one of the three with daily trading volumes in excess of $1 billion (along with BUSD).
Visa not only points out that USDC runs on Ethereum’s blockchain, but also that it is the first digital asset offered to its customers as an alternative to fiat currencies.
It was chosen for its value stability and security, as the Center Consortium (USDC’s governing body) has shown a proven track record and clear regulatory compliance.
After selecting the USDC stablecoin as a pilot asset, Visa made the necessary upgrades to its infrastructure to link the key components of digital currencies with Visa’s classic operations, such that the platform now supports reconciliation and currency conversion for stablecoins such as USDC.
The USDC transaction on Visa
Visa’s treasury systems have been integrated with those of Anchorage, which is used as the settlement agent for digital assets, and the first transaction was successfully completed with Crypto.com, which sent USDC to Visa’s Ethereum address on Anchorage.
This meant there was no need to use or convert fiat currency.
“The implications of our work with stablecoins are potentially far reaching — enabling our ability to one day support new Central Bank Digital Currencies (CBDC) as they become available. Central Banks are ramping up CBDCs, with 80% reporting that they are engaging in some CBDC-related effort, according to research from the BIS. We are committed to supporting these initiatives so they can be integrated into the existing payments ecosystem.
At Visa, we are on a mission to connect the world through the most innovative, reliable and secure digital payment network—and we’re continuing to push the boundaries of that network by connecting to public blockchains and new forms of money. We’re proud of the work we’ve done so far, and excited about what the future holds”.