Visa, a major credit provider, is experimenting with a program that allows partners to use the Ethereum (ETH) blockchain to settle fiat transactions.
In Monday’s announcement, Visa said it would partner with the cryptocurrency exchange platform and card issuer Crypto.com to introduce a cryptocurrency settlement system for money transactions later this year. It is reported that Visa partners will be able to exchange coins in US dollars (USDC) through the credit card payment network for fiat currency transactions.
According to Visa, its standard settlement process requires partners to send paper currency by bank transfer, which “can add cost and complexity for companies using digital currencies.” The pilot project will reportedly allow Crypto.com to send USDC to a Visa Ethereum address for some transactions under the Visa card exchange program by connecting Visa storage to Anchorage’s digital asset platform.
“National crypto-fintech companies need partners who understand their business and the complications of digital currency form factors,” said Jack Forrestl, Director of Visa Products. “Today’s announcement marks a milestone in our ability to meet the needs of fintech companies operating in stable or cryptocurrency.”
The company said it aims to make the system available to fintech companies and new banks that handle cryptocurrencies, including Bitcoin (BTC), Ether (ETH) and USDC. Visa says that “billions of dollars” in fiat are used to clear and settle daily transactions.
Crypto.com announced a partnership with Visa earlier this month as the exchange will join the Visa network and expand its cryptocurrency debit card. At the time, the company said it would launch Fiat’s lending program to allow cardholders to use their cryptocurrencies as collateral for paper loans – money that users can spend on trading platforms that support Visa payments.