The partners can use the Ethereum (ETH) blockchain to process a transaction made in Fiat. Visa will partner with cryptocurrency exchange Crypto.com in 2021 and offer a crypto processing system for transactions in fiat money. Visa partners can exchange USD Coin (USDC) over the credit card payment network to process transactions in fiat currency. According to Visa, the previous settlement process requires the partner to send fiat currencies via bank transfer, which meant additional costs. In the pilot project, Crypto.com sent USDC to Visa's Ethereum address. Visa is also partnering with the digital asset platform Anchorage for this launch.
Visa plans to make this system available to fintech companies and neo-banks that trade cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and USDC. According to Visa, this will amount to billions of USD in fiat processing transactions daily. Crypto.com announced a partnership with Visa earlier this month, in order to join the Visa network and offer its crypto debit card to more people. Crypto.com said it would introduce a lending program in fiat money so cardholders could use their crypto holdings as collateral for fiat loans. Users can spend this money on all possible platforms that offer Visa payments.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now