The global financial landscape is undergoing a pivotal transformation as traditional payment giants integrate blockchain-based solutions into their infrastructure. In a significant development, Visa has announced it will begin allowing transactions on its network to be settled using USDC, a leading regulated stablecoin. This move marks a major step toward mainstream adoption of digital currencies and could fundamentally reshape how crypto payments are processed worldwide.
The Evolution of USDC and Visa’s Strategic Move
On March 29, Visa Inc. revealed plans to enable USDC (USD Coin) as a settlement mechanism across its vast payment network. The company has already launched a pilot program in collaboration with Crypto.com, a prominent cryptocurrency platform, with intentions to expand the offering to additional partners later this year.
While this may seem like a sudden leap, Visa’s journey into the crypto space began years earlier. As far back as December 2020, reports indicated that Visa had integrated USDC—issued by Circle on the Ethereum blockchain—into its global network, connecting it to over 60 million merchants. Notably, Visa does not hold or custody digital assets itself. Instead, it empowers issuing banks and fintech partners to incorporate USDC into their systems, enabling seamless sending and receiving of payments in stablecoin form.
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What Is USDC?
USDC was launched in September 2018 by the Centre Consortium, a collaboration between Circle and Coinbase. Designed as a fully regulated, dollar-backed stablecoin, each USDC token is pegged 1:1 to the U.S. dollar and backed by reserves held in audited financial institutions. This regulatory compliance and transparency have made USDC one of the most trusted digital dollars in the crypto ecosystem.
Unlike volatile cryptocurrencies such as Bitcoin or Ethereum, USDC offers stability—making it ideal for real-world transactions, cross-border remittances, and institutional use cases.
Why This Matters: Simplifying Crypto Transaction Clearing
Historically, integrating cryptocurrencies into traditional financial rails has been complex and costly. When users made purchases via crypto-linked Visa cards, their digital assets had to be converted into fiat currency before settlement. This process required multiple intermediaries, bank accounts holding fiat reserves, and end-of-day reconciliation with Visa—adding time, operational overhead, and expense.
With USDC settlement, that entire middle layer can be eliminated.
Instead of converting crypto to dollars and moving funds through legacy banking channels, issuers can now settle transactions directly in USDC on the blockchain. This real-time, on-chain settlement reduces friction, lowers costs, and accelerates clearing cycles from days to minutes.
According to Cuy Sheffield, Visa's Head of Crypto, the decision reflects growing consumer and institutional demand for accessible, usable digital currencies. “We’re seeing clear signals from users who want to hold, spend, and transact in digital assets,” Sheffield said. “Our role is to build the infrastructure that makes this possible at scale.”
Industry-Wide Shift Toward Digital Assets
Visa is not alone in embracing the digital asset revolution. Competitors like Mastercard, PayPal, and financial heavyweights such as Bank of New York Mellon and BlackRock are actively developing crypto-related services—from custody solutions to tokenized fund offerings.
Even Tesla briefly accepted Bitcoin for vehicle purchases, signaling corporate openness to alternative payment forms despite volatility concerns.
However, what sets Visa’s move apart is its focus on regulatory compliance and practical utility. By choosing USDC—a transparent, audited, and legally compliant stablecoin—Visa avoids the risks associated with decentralized or unregulated tokens while still unlocking the benefits of blockchain technology: speed, efficiency, and programmability.
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Market Impact: Crypto Gains Momentum
The news comes amid a broader bullish trend in the cryptocurrency market.
Bitcoin (BTC) Technical Outlook
According to market data, Bitcoin showed strong momentum with intraday trading consolidating around $55,250 before surging to a high of $58,333. Volume expanded significantly during the rally, indicating strong buying interest. On the hourly chart, BTC broke above its previous consolidation range, approaching key resistance near $58,900—the lower boundary of a prior high-volatility zone.
On a daily basis, Bitcoin recorded its fourth consecutive green candle, edging closer to all-time highs. Traders are watching closely whether this upward trajectory can sustain and break through critical resistance levels.
Ethereum (ETH) Follows Suit
Ethereum mirrored Bitcoin’s performance. After brief consolidation near $1,690, ETH rallied sharply with rising volume. The hourly chart confirmed a breakout above recent resistance, bringing price close to the lower end of a previous consolidation zone. With four straight daily gains, ETH is testing resistance at $1790.
Both assets show increasing institutional participation, supported by growing on-chain activity and derivatives market engagement.
Derivatives and DeFi Activity
Data from major platforms indicate stable BTC and ETH futures持仓 levels, with slight increases in trading volume—signaling healthy market activity. Futures basis spreads also rose slightly, suggesting moderate bullish sentiment.
In the decentralized finance (DeFi) space, total value locked (TVL) increased to $617.1 billion**, with real underlying deposits rising to **$447.5 billion. While overall DeFi transaction volume dipped slightly to $21.5 billion, major protocols maintained stability—though 1inch V2 saw a notable 31.38% decline in volume.
USDT traded at a slight premium on certain OTC markets, quoted at 6.67 CNY on Huobi Global’s platform.
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 is issued by Circle and backed by reserves held in audited financial institutions, making it one of the most transparent and widely adopted digital dollars.
Q: Does Visa now accept cryptocurrency directly?
A: No—Visa does not accept or hold cryptocurrencies. Instead, it enables its partners (like banks and fintechs) to settle transactions using USDC on its network, streamlining backend clearing without requiring direct crypto custody.
Q: How does USDC settlement benefit consumers?
A: While end-users may not notice immediate changes, faster settlement translates into quicker transaction confirmations, lower fees over time, and improved reliability—especially for international payments.
Q: Is this only available with Crypto.com?
A: Currently, Crypto.com is part of an initial pilot program. Visa plans to roll out USDC settlement capabilities to more partners globally later in 2025.
Q: Could other stablecoins be added in the future?
A: While Visa hasn't confirmed specific plans, its focus remains on regulated, transparent digital assets. Future expansion could include other compliant stablecoins depending on market demand and regulatory alignment.
Q: Does this mean Bitcoin or Ethereum will be used for Visa settlements?
A: Not at this stage. Visa’s current initiative focuses exclusively on stablecoins like USDC due to their price stability and regulatory clarity—key requirements for payment networks.
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Final Thoughts
Visa’s adoption of USDC for transaction settlement represents more than just a technical upgrade—it’s a signal of deepening convergence between traditional finance and blockchain innovation. By leveraging regulated stablecoins, Visa enhances efficiency, reduces costs, and prepares its network for a multi-currency digital future.
As more institutions follow suit—from banks launching tokenized deposits to asset managers exploring on-chain funds—the line between fiat and digital finance continues to blur.
For users, developers, and investors alike, the era of programmable money powered by trusted infrastructure is no longer theoretical—it’s arriving now.
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