Visa to Settle Transactions in USDC on Ethereum Blockchain

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In a groundbreaking move that signals deeper integration between traditional finance and the digital asset ecosystem, Visa has announced it will begin settling transactions using USDC, a dollar-pegged stablecoin, on the Ethereum blockchain. This marks the first time a major global payment network has embraced cryptocurrency for cross-border settlement, opening new pathways for faster, more efficient financial transactions.

The announcement, made in an official press release, underscores Visa’s strategic pivot toward supporting innovative fintech solutions and accommodating the growing demand for crypto-native infrastructure. By leveraging blockchain technology, Visa is streamlining its settlement process—particularly for cryptocurrency platforms—while reinforcing trust and compliance within a regulated framework.

Bridging Crypto and Traditional Finance

Historically, Visa has settled transactions exclusively in fiat currencies, requiring crypto companies to convert digital assets into traditional money before completing payments. This process was not only time-consuming but also costly due to exchange fees, banking intermediaries, and operational complexity.

Now, with the adoption of USDC (USD Coin)—a regulated, fully reserved stablecoin issued by Circle—Visa enables direct settlement over the Ethereum network. The first partner in this initiative is Crypto.com, a leading cryptocurrency platform. Instead of converting USDC into U.S. dollars through conventional banking channels, Crypto.com can now send USDC directly to Visa’s Ethereum wallet hosted by Anchorage, a federally chartered digital asset bank.

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This shift eliminates multiple layers of intermediation, significantly reducing transaction costs and settlement times. What once took days can now be completed in minutes, with greater transparency and auditability thanks to Ethereum’s immutable ledger.

A Milestone for Fintech Innovation

Jack Forestell, Chief Product Officer at Visa, emphasized the significance of this development:

“Today’s announcement marks an important milestone in our ability to meet fintech companies’ needs to manage their businesses using stablecoins or cryptocurrencies. It’s actually an extension of what we do every day—securely enabling payments across all different types of currencies around the world.”

By embracing stablecoin settlements, Visa is positioning itself as a bridge between legacy financial systems and next-generation digital economies. This isn’t just about efficiency—it’s about building a more inclusive financial infrastructure that supports innovation while maintaining regulatory compliance and security.

For fintech firms and crypto platforms, the implications are profound. Direct settlement in USDC means they can operate more nimbly, reduce reliance on traditional banking partners, and scale globally with lower friction. As Visa plans to expand this capability to additional partners later this year, the ripple effects across the industry could accelerate mainstream crypto adoption.

How the Settlement Process Works

The technical implementation relies on trusted custody and verification mechanisms:

  1. Crypto.com initiates payment in USDC.
  2. The funds are sent to Visa’s Ethereum address, managed securely by Anchorage.
  3. Anchorage verifies receipt and notifies Visa’s system.
  4. Once confirmed, the transaction is considered settled.

This end-to-end process runs on public blockchain infrastructure but operates within a tightly controlled environment involving KYC/AML checks, regulatory reporting, and real-time monitoring—ensuring alignment with financial regulations.

Moreover, because USDC is pegged 1:1 to the U.S. dollar and undergoes regular audits, it provides the stability needed for enterprise-grade transactions without the volatility associated with other cryptocurrencies like Bitcoin or Ethereum.

Expanding the Crypto Ecosystem

Kris Marszalek, Co-Founder and CEO of Crypto.com, welcomed the collaboration:

“We’re excited about this development because it brings us closer to our mission of empowering millions of consumers worldwide to access and use cryptocurrency seamlessly. Visa’s ability to directly receive and interact with crypto makes adoption easier than ever.”

This partnership reflects a broader trend: established financial institutions recognizing the value of integrating with decentralized networks. Rather than resisting change, companies like Visa are adapting by adopting blockchain-based settlement layers that enhance speed, transparency, and scalability.

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As more businesses explore digital currencies for payroll, remittances, and cross-border trade, infrastructure support from giants like Visa becomes critical. The move also sets a precedent for other payment networks—such as Mastercard or American Express—to follow suit.

Frequently Asked Questions (FAQ)

Q: What is USDC?
A: USDC (USD Coin) is a regulated stablecoin pegged 1:1 to the U.S. dollar. It operates on multiple blockchains, including Ethereum, and is backed by fully reserved assets.

Q: Why did Visa choose Ethereum for this integration?
A: Ethereum offers a mature, secure, and widely adopted smart contract platform with robust developer tools and high transaction throughput—making it ideal for enterprise-level financial applications.

Q: Is this available to all businesses?
A: Not yet. Currently, Visa is piloting USDC settlements with Crypto.com. The company plans to extend this capability to more partners later in 2025.

Q: Does this mean Visa is “going fully crypto”?
A: No. Visa is not replacing fiat settlements but expanding its options. This move supports select fintech partners who operate heavily in digital assets.

Q: Is my money safer using USDC?
A: USDC is subject to strict regulatory oversight and regular audits. When used within compliant platforms like those partnered with Visa, it offers a secure and transparent alternative to traditional wire transfers.

Q: Can individuals use this service?
A: Not directly. This is a B2B settlement solution for businesses. However, consumers may benefit indirectly through faster services and lower fees from crypto platforms.

Looking Ahead: The Future of Digital Settlements

Visa’s adoption of USDC on Ethereum is more than a technical upgrade—it’s a signal of evolving financial paradigms. As blockchain technology matures and regulatory frameworks clarify, we’re likely to see increased use of digital dollars in everyday commerce.

From remittances to supply chain financing, stablecoins offer real utility when integrated responsibly into existing systems. And with trusted intermediaries like Visa leading the charge, confidence in these new models grows.

👉 Explore the future of digital currency and payment innovation

While challenges remain—such as scalability, interoperability, and global regulation—the trajectory is clear: the future of finance will be hybrid, blending the reliability of traditional systems with the agility of decentralized networks.

For developers, entrepreneurs, and financial institutions alike, now is the time to understand and engage with this transformation. The tools are here. The infrastructure is evolving. And major players are already moving forward.

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