Introduction
When Dee Hock founded Visa, his vision was to create a globally leading system for money transfer. Today, this means adapting the Visa network to new transaction formats. We’re proud to announce a cryptocurrency milestone: enabling the first transactions settled via our payment network in USD Coin (USDC), a regulated stablecoin backed by the U.S. dollar and powered by the Ethereum blockchain.
The Need for Crypto Integration
Every day, billions of dollars are processed through Visa’s secure and reliable transaction service. While our system has served traditional finance for decades, what about fintechs and neo-banks operating in digital currencies like Bitcoin, Ethereum, or USDC?
Take Crypto.com, the largest crypto exchange and payment provider:
"We believe in the potential of digital currencies. Partners like Visa, which can directly accept and interact with them, help maximize their benefits."
— Kris Marszalek, CEO of Crypto.com
Currently, crypto businesses must convert digital assets into fiat currencies for Visa settlements, adding cost and complexity. Our goal? Simplify this process by enabling end-to-end settlements in digital currency.
Collaboration with Anchorage
To achieve this, Visa partnered with Anchorage, the first federally chartered digital asset bank in the U.S.:
"Visa sought to link their payment network with Anchorage’s custody platform to enable seamless crypto settlements."
— Diogo Mónica, Co-Founder of Anchorage
Over a year, our teams integrated Visa’s treasury systems with digital asset platforms, focusing on three key criteria for selecting a pilot asset:
- Demand: Is there a thriving ecosystem supporting the asset?
- Stability: Does it maintain price and liquidity?
- Security: Are robust compliance protocols in place?
👉 Discover how Visa is revolutionizing crypto payments
Why USDC?
USDC emerged as the ideal candidate:
- $10B+ in circulation with strong developer and institutional adoption.
- Clear compliance frameworks by the Centre Consortium.
- Growing use cases in cross-border B2B payments and trade settlements.
Bridging Digital and Fiat Currencies
Key upgrades enabled Visa to:
- Support USDC reconciliation and conversion.
- Integrate Visa’s treasury with Anchorage’s digital asset custody.
- Launch a new settlement report with blockchain wallet addresses.
In a historic first, Crypto.com sent USDC to Visa’s Ethereum address at Anchorage—a small step for Visa, a giant leap for crypto-fiat integration.
Future Outlook
Stablecoins pave the way for Central Bank Digital Currencies (CBDCs):
- 80% of central banks are exploring CBDCs (BIS, 2020).
- Visa aims to support their integration into existing payment infrastructures.
As we expand our network’s capabilities with blockchain technology, we’re excited to shape the future of money.
FAQ
Q: How does USDC differ from other stablecoins?
A: USDC is fully regulated, transparently audited, and backed 1:1 by U.S. dollar reserves.
Q: Will Visa support other cryptocurrencies?
A: Initially focused on USDC, but we’re evaluating additional assets based on demand and compliance.
Q: When will this feature be widely available?
A: After further testing and regulatory consultations, we aim to roll it out to more partners in 2025.
👉 Explore Visa’s digital currency strategy
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