For the previous 18 months, Visa has been curating a corridor for cryptocurrencies to be used within their asset network. Visa is collaborating with Anchorage and Crypto.com to build the groundwork required for their mega plan.
On the 29th of March 2021, Visa announced that they have successfully concluded a transaction with USDC. Crypto.com will be providing their payment gateway technology whereas, Anchorage will be the settlement partner because it being a digital-resource bank.
According to the press release by Visa, this move guarantees that their treasury framework would be ready for CBDCs whenever they are released.
The chief product officer of Visa stated in the press release that crypto-based fintech likes to work with companies who can comprehend their industry and the complication regarding cryptocurrencies. He carried on saying with today’s announcement. Visa has ensured that the requirements of any fintech company working with cryptocurrencies and stablecoins are fulfilled.
The chief executive officer of Crypto.com, Kris Marszalek, concurred that Visa’s ability to comprehend the prospects that crypto-assets can deliver ensured that their partnership can help the world in this transitional period towards cryptocurrencies.
President and co-founder of Anchorage, Diogo Monica, states that Visa approached Anchorage in 2019 and presented an idea of making settlement payment seamless, secure, and efficient. The plan consisted of Anchorage linking their custody platform with Visa’s treasury. If successfully implemented, this would allow subsequent generation of crypto native issuers the ability to settle in a cryptocurrency over a blockchain with the help of Visa directly.
Visa states in a web post that at the end of the day, three main factors will decide the assets that will be offered for settlement choices; security, demand, and stability.
Following the aforementioned requirements USDC, checked all boxes. According to Visa, USDC has an admirable history of regulatory compliance, an extensive set of developers, and has close to $10 billion circulating in the market. Visa also highlighted nontraditional use cases for USDC, like cross-country business-to-business payments, remittances, and trade settlements.
Mastercard has also reported bringing few cherry-picked cryptocurrencies for its network. Both financial companies look confident for the upcoming future as there are several blockchain patents owned by the two juggernauts.