Visa plans to allow its partners to use the Ethereum (ETH) blockchain to settle fiat transactions

Major credit provider #Visa# is piloting a program that will allow its partners to use the Ethereum (ETH) blockchain to settle fiat transactions.

Visa said in an announcement on Monday that it will work with cryptocurrency exchange platform and card issuer Crypto.com to provide a crypto settlement system for fiat transactions later this year. Visa’s partners will reportedly be able to exchange USD Coin (USDC) through the card’s payment network to settle transactions made in fiat currencies.

Visa said its standard settlement process requires partners to send fiat currencies via wire transfers, “which can add costs and complexity to businesses built with digital currencies.” The pilot will reportedly allow Crypto.com to send USDC to Visa’s Ethereum address to settle certain transactions under the crypto exchange’s Visa card program by linking Visa’s funds with digital asset platform Anchorage.

“Crypto-native financial technology companies want partners who understand their businesses and the complexities of digital currency form factors,” said Jack Forestell, chief product officer at Visa. “Today’s announcement marks an important milestone in our efforts to meet the needs of financial technology companies that manage their businesses in stablecoins or cryptocurrencies.”

The company said it aims to make the system available to fintech companies and neobanks that trade cryptocurrencies, including Bitcoin (BTC), Ether (ETH) and USDC. Visa reports that “fiat currencies” are involved in billions of dollars in clearing and settlement transactions every day.

Crypto.com announced a partnership with Visa earlier this month, which will see the exchange join the Visa network and expand the reach of its crypto debit card. At the time, the company said it would launch a fiat lending program to allow cardholders to use their crypto holdings as collateral for fiat loans - users can spend these funds at merchant platforms that support Visa payments.

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