Visa is running a pilot program that will allow its partners to use the Ethereum Blockchainchain to settle transactions in Fiat currencies.
to the Report Coin Telegraph, Visa, announced yesterday that it is seeking to establish a settlement system for transactions with Fiat currencies in partnership with Cryptodatcom. Reports suggest that Visa partners could use the USDC digital currency to settle Fiat transactions.
According to Visa, normally the parties to a transaction have to transfer the desired amount through interbank transfers, and this method may have “complexities” for companies created with digital currencies and add to “costs”. In this trial program, Cryptodatcom can transfer USDC to Ethereum Visa address to settle transactions. This is made possible through the Visa Treasury connection through an intermediary called the Anchorage Platform.
Jack Forestell, Senior Director of Visa Products, said:
Companies in the field of financial technology, which are based on digital currencies, want their partners to understand their business and the complexities of this type of business. Today’s program represents a major breakthrough in our ability to meet the needs of financial technology companies that manage their businesses in the form of stable coins or digital currencies.
According to Visa, the company plans to enable the system for fintech companies and online banks that deal with digital currencies such as Bitcoin, Ethereum and USDC. The company also said that billions of dollars are used every day in the form of Fiat currencies in transactions and financial settlements.
About a month ago, Cryptodatcom announced the start of cooperation with Visa. According to the exchange, the two companies are looking to offer digital currency credit cards. Visa has announced plans to launch a lending program in Fiat currencies. In this program, applicants use digital currencies as collateral for lending. After receiving the loan, users can use the amount to purchase from Visa support platforms.