Visa is partnering with Circle, the company behind the USDC stable coin. The announcement is another step by the payment giant into the crypto world and is good news for overall Crypto adoption.
Stablecoins are cryptocurrencies whose value is linked to fiat currencies. These can be all kinds of currencies, but by far, the largest stablecoins are related to the US dollar. Stablecoins make it fast and straightforward to buy cryptocurrency, which makes them extra interesting for traders. Stable Coins are also beneficial for international transactions.
USDC is the second-largest stable coin in the market with a market cap of nearly $ 3.1 billion. Circle’s stable coin is based on the Ethereum (ETH) blockchain. Tether’s USDT is by far the largest with a $ 19.3 billion market cap. The collaboration with Visa could provide a nice boost for USDC.
The plan is to issue a corporate credit card that will allow companies to use USDC tokens. Visa’s head of crypto, Cuy Sheffield, told Forbes, “This will be the first corporate card that allows companies to spend USDC balance.”
In the long term, this cooperation will ensure easy international payments with USDC stable coin. This partnership will extend the USDC approach to 60 million companies’ payment networks already using VISA.
The Circle is part of Visa’s Fast Track program, which aims to prepare crypto companies to join Visa’s network. For Visa, entering the crypto world makes sense, Sheffield said:
Visa is aiming to expand its network by cooperating with stable coin networks like USDC. Such cooperation values so much for cryptocurrencies. Crypto will get more exposure with the aid of such financial giants, as a result, cryptocurrencies will be more adopted worldwide.