Visa has partnered to integrate its payment system with the USDC, stablecoin pegged to the dollar. Thus, the cryptocurrency will have access to a payment network with more than 60 million traders.
With a market capitalization of US$ 2.9 billion, USDC is one of the largest stablecoins, competing with tether.
The agreement provides for stablecoin’s access to Visa’s payment structure. That is, network customers will be able to make international payments using cryptocurrency.
Amounts sent in USDC can also be converted into other currencies and used on the debit card. Therefore, international transactions will be done with less friction.
Visa’s partnership with USDC favors the network
On the other hand, Visa may reduce its transaction costs.
“Visa estimates that about US$ 120 trillion in payments are made annually using checks and wire transfers, each of which can cost up to US$ 50, regardless of the size of the transaction”, Forbes said.
The partnership will also allow partners to issue cards specialized in the use of the USDC.
Visa wants to establish itself as a network of networks
Cuy Sheffield, Visa’s head of cryptoassets, believes the credit card network is part of the cryptocurrency ecosystem.
“We think of Visa as a network of networks. Blockchain and stablecoins networks, such as the USDC, are just different networks. So we think there’s a significant value that Visa can provide to our customers by allowing them access to network traders.”
Visa recently invested US$ 40 million in a cryptocurrency startup. And it also applied for a patent for a solution that will act in blockchain mining.
The integration of stablecoins with credit card networks is a trend in the blockchain environment. Besides, it confirms a vocation of these assets to be a bridge between old money and cryptoassets.