BlocksInform
Major credit credit provider Visa is piloting a program that will allow its partners to use the Ethereum (ETH) blockchain to settle a transaction made in fiat.
In a Monday announcement, Visa said it will be partnering with cryptocurrency exchange platform and card issuer CRYPTO.COM to offer a crypto settlement system for fiat transactions later this year.A recent report indicates that partners of Visa will be able to exchange their USD Coins (USDC) over the credit card’s payment network for deposit and withdrawal transactions in fiat currency.
According to Visa, its standard settlement process requires partners to send fiat currency via wire transfer, which "can add cost and complexity for businesses built with digital currencies."It is expected that the pilot will allow Crypto.com to send USDC to Visa's Ethereum address in order to finalize some of its Visa card transactions by linking Visa's treasury with digital asset company Anchorage.
Bitcoin-native fintechs seek partners who understand their business and the complexities of cryptocurrency forms, said Jack Forestell, vice president and general manager of Visa Consumer Products.“The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency.”
The firm said it aims to make this system available to Fintech companies and neobanks dealing in cryptocurrencies including Bitcoin (BTC), Ether (ETH), and USDCAs such, .Visa reports "billions of dollars" in fiat are involved in clearing and settling transactions daily.
Crypto.com announced a partnership with Visa earlier this month in which the exchange would join the Visa network and expand the reach of its crypto debit card.Back then, the company said it would introduce a fiat lending program to enable crypto holders to use their holdings as collateral in the form of fiat loans for merchant platforms that accept Visa payments.
