Visa revealed that it would be linking its payment network to the USDC stablecoin as it looks to expand its presence within the crypto space
On Wednesday, Visa announced that it has partnered with Circle to link its USDC stablecoin to the Visa network that houses over 60 million merchants globally. This latest development was covered by Forbes, which revealed the partnership between the two companies.
Centre is the issuer of the USDC stablecoin, and Coinbase and Circle founded it. Visa revealed that although it would not custody the USDC coin, it would be working with Circle to choose the credit card issuers that would integrate the USDC software into their platforms. This would allow the merchants to start receiving and sending the stablecoin.
Circle will participate in the Visa Fast Track program, which will last until next year. After the integration of the software into the merchants’ platforms, the businesses would be able to receive and send international USDC payments to any business supported by Visa. The stablecoin would then be converted to the local fiat currency of a merchant.
This is a huge development for USDC as it means that millions of Visa merchants globally and their customers can use the stablecoin to pay for goods and services. Visa added that after Circle graduates from the Fast Track program, it would issue a USDC credit card that allows merchants to send and receive the stablecoin from other businesses using the card.
Visa head of crypto, Cuy Sheffield, while confirming the news on Twitter, stated that he believes that the partnership between the Visa and Circle will give birth to the first corporate card that allows businesses to spend the USDC coin. Visa thinks that the partnership will boost the utility of the USDC and make it easier for Circle’s business clients to use the stablecoin.
Visa has been expanding its presence within the cryptocurrency space. The payment company has been investing in numerous cryptocurrency startups and has a unit dedicated to cryptocurrency and blockchain development. Visa wants cryptocurrency entities like USDC to count on the payment company to expand their networks and make it easier for people to spend the cryptocurrencies.
Circle wouldn’t be the first cryptocurrency company on the Fast Track program. Visa has already incorporated 25 crypto wallet providers into its program, and each of them can integrate the USDC stablecoin into its platforms.
Visa’s rules demand that a bank formally issues cards in the United States. Hence, Circle is required to partner with a bank to launch the USDC credit card product. At the moment, Circle is yet to reveal the U.S bank it intends to partner with.