In a groundbreaking move that underscores the growing integration of digital assets into traditional financial infrastructure, Visa has successfully piloted the use of USD Coin (USDC)—a dollar-backed stablecoin—to settle transactions over the Ethereum blockchain. This development marks a pivotal moment in the evolution of global payments, signaling a shift toward more efficient, transparent, and blockchain-native settlement systems.
The pilot program was conducted in collaboration with Crypto.com, one of the world’s leading cryptocurrency platforms and a long-standing Visa partner. As part of this initiative, Visa is testing the capability to allow partners to settle transactions using USDC directly on public blockchains like Ethereum, eliminating the need for conversion into traditional fiat currencies at intermediate stages.
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A Strategic Leap in Visa’s “Network of Networks” Vision
This innovation aligns with Visa’s broader “network of networks” strategy, which aims to support seamless money movement across all forms of value—whether traditional fiat, digital currencies, or future central bank digital currencies (CBDCs). By integrating stablecoins like USDC into its settlement framework, Visa is positioning itself as a bridge between legacy financial systems and emerging decentralized ecosystems.
Traditionally, Visa requires its partners to settle transactions in conventional fiat currencies such as USD or EUR. While effective for traditional banking institutions, this model introduces friction for crypto-native businesses that operate primarily in digital assets. Converting between crypto and fiat adds unnecessary complexity, delays, and costs—especially for high-frequency platforms like exchanges and fintech apps.
With USDC settlement now live in pilot mode, companies like Crypto.com can manage their treasury operations entirely in digital dollars, streamlining accounting, reducing counterparty risk, and enabling faster reconciliation—all while maintaining full regulatory compliance and auditability.
Why USDC? The Role of a Trusted Stablecoin
USD Coin (USDC), issued by Centre—a consortium co-founded by Circle and Coinbase—is a regulated, fully reserved stablecoin pegged 1:1 to the US dollar. Each USDC token is backed by equivalent cash and short-term U.S. Treasury holdings, ensuring price stability and trust.
David Puth, CEO of Centre, emphasized the significance of Visa’s adoption:
“Visa is leading the market with its innovative approach to payments in many forms. We are very impressed with their efforts. Having USDC on the Visa network is an outstanding next step in our mission to connect the world using stablecoins built on Centre standards, starting with USDC.”
By choosing USDC, Visa leverages a digital dollar standard that is already widely adopted across DeFi, centralized exchanges, and institutional platforms. This interoperability makes USDC an ideal candidate for cross-border settlements, real-time payments, and programmable finance use cases.
Enabling Crypto-Native Business Models
For crypto-first companies, the ability to settle in USDC removes a major operational bottleneck. Instead of constantly converting digital assets into fiat to meet settlement obligations, firms can now keep capital within the digital economy—unlocking new possibilities for liquidity management, yield generation, and automated smart contract workflows.
Jack Forestell, Executive Vice President and Chief Product Officer at Visa, highlighted the strategic intent:
“Crypto-native fintechs want partners who understand their business and the complexities of digital currency form factors. The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency, and it’s really an extension of what we do every day—securely facilitating payments in all different currencies all across the world.”
This shift isn’t just about efficiency; it’s about empowering innovation. With direct USDC settlement, startups and fintechs can design financial products that are truly native to the blockchain era—without being constrained by legacy banking infrastructure.
Anchorage: The Institutional Gateway
A key enabler of this new capability is Anchorage Digital, a federally chartered digital asset bank that provides secure custody and blockchain transaction services for institutions. Visa integrated with Anchorage’s API infrastructure to facilitate the transfer and settlement of USDC on Ethereum.
Diogo Mónica, Co-Founder and President of Anchorage, noted:
“Anchorage’s platform has been purposefully built for institutions like Visa to build new products in crypto. We’ve been with Visa every step of the way since 2019 and are extremely pleased to see these first stablecoin payment rails come to life through Anchorage APIs.”
This partnership highlights how regulated custodians are becoming critical infrastructure for bridging traditional finance (TradFi) and decentralized finance (DeFi).
Future-Proofing for CBDCs and Beyond
Beyond supporting existing stablecoins, Visa’s updated treasury systems lay the foundation for future integration with central bank digital currencies (CBDCs) as they emerge globally. With many nations actively exploring or piloting digital versions of their national currencies, Visa’s blockchain-ready architecture ensures it remains at the forefront of next-generation payment innovation.
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Frequently Asked Questions (FAQ)
Q: What is USDC?
A: USDC (USD Coin) is a regulated stablecoin pegged 1:1 to the U.S. dollar. It operates on multiple blockchains and is backed by equivalent reserves in cash and short-term U.S. Treasury securities.
Q: Why is Visa using Ethereum for settlements?
A: Ethereum offers a secure, transparent, and widely adopted public blockchain infrastructure. Its smart contract capabilities enable automated, auditable transactions—ideal for modern financial networks.
Q: Is this available to all Visa partners?
A: Currently, this capability is in pilot with Crypto.com. Visa plans to expand access to additional partners later in 2025.
Q: Does this mean Visa is replacing fiat currency?
A: No. This is an expansion of settlement options. Visa continues to support fiat currencies while adding support for digital dollars like USDC to meet evolving market needs.
Q: How does this impact consumers?
A: While the change occurs behind the scenes, it enables faster, more efficient services from fintechs and crypto platforms—potentially leading to lower fees, quicker transaction processing, and innovative new products.
Q: Is this transaction fully compliant with regulations?
A: Yes. All activities are conducted through regulated entities like Anchorage Digital and comply with AML/KYC standards and financial regulations.
Conclusion
Visa’s adoption of USDC for Ethereum-based settlements represents more than a technical upgrade—it’s a strategic declaration that digital currencies are ready for mainstream financial infrastructure. By embracing blockchain-native settlement methods, Visa is not only future-proofing its network but also accelerating the global transition toward a more inclusive, efficient, and programmable financial system.
As crypto-native businesses gain access to institutional-grade payment rails—and traditional players adopt digital asset standards—the line between old and new finance continues to blur. One thing is clear: stablecoins are no longer just speculative assets—they’re becoming essential tools for real-world commerce.
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