Visa announced that it is linking its payments network of 60 million merchants with the USD Coin (USDC) stablecoin.
As part of this partnership, Circle will work with Visa to help integrate USDC into the platforms of selected credit card issuers. The two companies hope that through the integration they will be able to provide faster and cheaper international payments. USDC can be sent anywhere in the world where Visa is accepted.
The USDC team also promises to implement a second-tier solution that will dramatically reduce or even eliminate fees. Another stated advantage is the zero commission for purchasing a stablecoin through the Coinbase exchange. This will potentially make it easier to transfer USDC to and from bank accounts.
USD Coin, a stablecoin that runs on the Ethereum blockchain, has a total market capitalization of $2.9 billion and is pegged 1:1 to the US dollar. Visa estimates that today about $120 trillion of payments are made through bank transfers, which can cost up to $50 each. On the Ethereum blockchain, these costs will be much lower and transaction speeds will be instantaneous.
Visa itself will not store USDC, but will support the issuance of a corporate credit card that will allow businesses to send and receive payments in US dollars directly from any company using the card.
The card is scheduled to launch next year, the exact release date has not yet been announced.
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