Leading payment card company Visa is pushing into the red hot stablecoin segment and has selected USD Coin (USDC) for the job.
Visa has paved the way for Ethereum-based USDC of blockchain startup Circle to join its mega payments network that reaches tens of millions of merchants and positions the stable coin for wide acceptance.
Circle has partnered with Visa and started using the stablecoin’s software to bring a group of credit card issuers right into their own infrastructure so they can support USDC transactions, Forbes reported today citing Visa chief of crypto Cuy Sheffield. The report found that Visa will not hold the USDC, which ranks 14th by market cap, on its own.
Circle, which was founded in 2013 and has undergone a transformation since operating as a Bitcoin (BTC) wallet service, is participating in Visa’s fintech-focused Fast Track program, which is expected to complete in 2021. After closing, Circle Visa will issue a credit card that will allow companies to send and receive USDC payments directly from any company using the card, the report added.
“This will be the first corporate card that companies can use to issue a USDC balance. We therefore believe that this will greatly increase the value USDC can bring to Circle’s business customers, ”Sheffield was quoted as saying.
Rather than sit on the sidelines, Visa has recently been deepening its commitment to the cryptocurrency space. In addition to the recently announced BlockFi and wrinkles Visa Cards, the card giant invested millions of dollars to support a blockchain startup and also has a patent pending to “[mint] traditional currency in a blockchain, ”says Forbes. The company views USDC as one of the networks in its own network rather than a rival. It recognizes the “significant value” it can offer customers, who can then use the stablecoin to spend money across Visa’s vast network of merchants.
Visa has a market cap of $ 462 billion versus $ 2.8 billion of Coin.
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