The partners of Visa will be able to settle fiat transactions with crypto over the network.
Crypto adoption is on its way with the big news of Visa finally announcing the plan of letting its partners use the Ethereum blockchain for settlement of transactions made in fiat. For this initiative, the company has partnered with the famous cryptocurrency exchange, Crypto.com. The plan will be brought to life in the latter part of this year.
Citing the reason for this step, Visa mentioned that the standard procedure of settlements through wire transfer increases costs for cryptocurrency businesses. So with new programs, crypto.com will send funds in USDC (USD Coin) to Visa’s Ethereum address. It will settle the transactions made under the crypto platform’s visa card program.
The news of the partnership between Visa and Crypto.com came earlier this month. Crypto exchange managed to join hands with Visa for increasing the targeted audience of its crypto debit card.
The Chief Product Officer of Visa, Jack Forestall, called this development of his company a major milestone in the world of fintech.
Crypto-native fintechs want partners who understand their business and the complexities of digital currency form factors,.., The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency.
The firm was also positive about providing this system to companies dealing with financial technology and cryptocurrencies like Bitcoin (BTC), Ether (ETH) and USDC.
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Fintech is expanding at a rapid pace. The marriage between technology and finance is finally bringing happy endings. Last month, MasterCard announced its plan of engaging in the digital currencies business. Now, Visa is also operating in this arena. The traditional financial industry is adopting crypto at a much faster pace than initially thought off. Let’s see what comes next.