• Visa is reportedly testing large-value USDC settlements on the Ethereum blockchain.
• Visa Head of Crypto Cuy Sheffield announced the news during the StarkWare Sessions 2023 event.
• Swarm Markets co-founder Philipp Pieper believes Visa’s crypto strategy could help with further DeFi/TradFi integration.
Visa Testing USDC Settlements on Ethereum
Visa, one of the world’s largest payment providers, has recently announced that it is trialing large-value USDC settlements on the Ethereum blockchain. The news was revealed by Cuy Sheffield, head of crypto strategy at Visa, at a recent StarkWare event.
USDC as Settlement Currency
The payments giant is looking to accept tokenised digital dollar payments with settlements in traditional dollars. Specifically, the trial focuses on USD Coin (USDC), a major stablecoin developed by Circle and added to Visa’s platform in March 2021. According to Cuy Sheffield, “We’ve been testing how to actually accept settlement payments from issuers in USDC starting on Ethereum and paying out in USDC on Ethereum.“
Impact of Stablecoins and CBDCs
The development follows regulatory scrutiny over stablecoins as well as increased focus on central bank digital currencies (CBDCs). In particular, the UK Treasury recently released its consultation paper regarding its own digital pound – an expansion many see as key for innovation in cryptocurrency and blockchain technology globally.
Implications for DeFi/TradFi Integration
Philipp Pieper, co-founder of blockchain platform Swarm Markets, commented that Visa’s move could be a crucial pivot point for adoption of blockchain technology across financial infrastructure worldwide – particularly when it comes to integrating decentralized finance (DeFi) and traditional finance (TradFi).
Overall, Visa’s commitment to exploring crypto payments settlement appears set to open up new opportunities for both businesses and customers alike – allowing them greater access to digital assets with more convenience than ever before.