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Visa will settle transactions on the Ethereum blockchain

Photo of: Nathan VDH
by Nathan VDH

For the first time, Visa has processed a cryptocurrency (USDC) payment directly on the Ethereum blockchain. And this adoption by a multinational company is helping to drive up the price of BTC.

Statements, then actions. Visa CEO Al Kelly assured just recently. The firm must be a reference player of cryptocurrencies, stablecoins and also Bitcoin. Thus, for the first time, its network has allowed a settlement directly in crypto.

Visa and its partners have formalized a pilot. And as part of this, the firm has accepted the first settlement in USDC from Crypto.com. The transaction was recorded on the Ethereum blockchain.

The funds were sent from Crypto.com to the Visa Ethereum address at the Anchorage bank. Anchorage Bank acts as a custodian on behalf of Visa. Other partners of the payment network should in turn be able to pay in cryptocurrencies.

Indeed, until now, Crypto.com had to sell cryptocurrencies to cover its obligations towards Visa. The payment was therefore made in cash. But Visa is preparing a new program to open up to cryptocurrencies.

This is a first for the firm. For many observers, this pilot project is therefore further evidence of the democratization of native cryptocurrency payments – and therefore their acceptance.

“Today’s announcement marks a significant step in our ability to meet the needs of fintechs that run their business in a stablecoin or cryptocurrency,” notes a Visa executive.

Adds Jack Forestell, “It’s really an extension of what we do every day, securely facilitating payments in all different currencies around the world. “In short, business as usual.

This USDC settlement on Ethereum is just a first step. Visa is reportedly working on developing APIs for banks and financial institutions. Their goal? To allow them to offer their customers the buying and selling of cryptocurrencies on the Visa network.

Since what’s good for the cryptocurrency market is also good for Bitcoin (and vice versa), Visa’s announcement benefits the valuation of the crypto-asset. Shortly after it was made official, BTC was gaining nearly $2,000. It is now close to $58,000 again.