The global financial landscape is undergoing a transformative shift as traditional payment giants integrate blockchain-based solutions into their infrastructure. A pivotal development in this evolution is Visa’s adoption of USDC for transaction settlements across its network. This move eliminates the need to convert digital assets into fiat currency during clearing, significantly simplifying and accelerating the crypto transaction process.
On March 29, Visa Inc. announced that it will begin allowing partners to settle payments using USDC (USD Coin), a regulated stablecoin pegged 1:1 to the U.S. dollar. The company has already launched a pilot program in collaboration with Crypto.com, a leading crypto payment and exchange platform. If successful, this integration will be rolled out to more financial institutions and fintech partners later this year.
While this recent announcement marks a major milestone, Visa’s journey with USDC began earlier. As early as December 2020, Forbes reported that Visa had connected Circle’s USDC—issued on the Ethereum blockchain—to its vast payment network, which includes over 60 million merchants worldwide. Notably, Visa does not directly hold or custody cryptocurrencies. Instead, its collaboration enables issuing banks and fintech platforms to integrate USDC into their systems, allowing them to send and receive digital dollar settlements seamlessly.
👉 Discover how digital dollar settlement is reshaping global payments.
The Rise of USDC: A Regulated Stablecoin Powerhouse
USDC was launched in 2018 by the CENTRE consortium, a joint initiative between Circle and Coinbase, designed to establish standards for fiat-backed stablecoins. Unlike volatile cryptocurrencies such as Bitcoin or Ethereum, USDC maintains price stability through full reserve backing—each coin is fully collateralized by U.S. dollar-denominated assets held in regulated financial institutions.
This compliance-first approach has made USDC one of the most trusted and widely adopted digital dollars in the world. Today, it plays a critical role in decentralized finance (DeFi), cross-border remittances, and institutional treasury management—all areas where speed, transparency, and regulatory clarity are paramount.
Why Visa’s Move Matters for the Crypto Ecosystem
Historically, when traditional financial institutions engaged with cryptocurrency transactions, they faced a cumbersome two-step process: first converting digital assets into fiat currency before settling through legacy banking rails. This added layers of complexity, cost, and delay—especially for users spending crypto via Visa-branded cards.
For example, prior to USDC integration, a user making a purchase with a crypto-linked Visa card would trigger a chain of events: the crypto wallet provider would sell the digital asset for USD, deposit the funds into a bank account, and then settle with Visa at the end of the day. This reliance on fiat intermediaries undermined one of crypto’s core promises: frictionless value transfer.
Now, with USDC settlement, that entire process can occur natively on the blockchain. When a transaction occurs, the issuer can use USDC directly to settle with Visa—bypassing traditional banking channels and reducing settlement time from days to minutes.
This advancement brings several key benefits:
- Faster settlement times: Near-instant clearing via blockchain instead of T+2 banking cycles.
- Lower operational costs: Reduced need for intermediary banks and foreign exchange conversions.
- Greater scalability: Enables real-time global payments without geographic or jurisdictional bottlenecks.
- Improved transparency: On-chain settlement provides an immutable audit trail.
Broader Industry Adoption: The Digital Currency Race Heats Up
Visa is not alone in embracing digital currencies. Its competitors are rapidly following suit:
- Mastercard has been testing stablecoin settlements and expanded support for crypto wallets.
- PayPal launched its own USD-backed stablecoin, PYUSD, in 2023.
- Bank of New York Mellon and BlackRock have entered the space with blockchain-based asset custody and tokenization initiatives.
- Even Tesla briefly accepted Bitcoin for vehicle purchases and continues to hold it on its balance sheet.
These developments signal a broader institutional recognition: digital assets are no longer niche experiments—they are becoming foundational components of modern finance.
👉 Explore how institutions are integrating blockchain into mainstream finance.
Market Reaction: BTC and ETH Show Strong Momentum
In tandem with these structural shifts, major cryptocurrencies are displaying bullish momentum.
Bitcoin (BTC): Approaching All-Time Highs
According to market data, Bitcoin traded in a tight range around $55,250 before breaking upward in afternoon trading. It surged to a high of **$58,333**, accompanied by a noticeable increase in volume. On the hourly chart, this represents a decisive breakout above previous consolidation levels.
On the daily timeframe, BTC recorded its fourth consecutive green candle, bringing it close to its historical peak. Traders are now closely watching whether price can sustain momentum and突破 resistance at $58,900.
Ethereum (ETH): Following BTC’s Lead
Ethereum mirrored Bitcoin’s trajectory, consolidating briefly around $1,690 before launching an upward move. Volume expanded significantly during the rally, pushing ETH toward key resistance near **$1,790**. Like BTC, ETH posted four straight daily gains and is testing the lower boundary of its prior high-range zone.
Derivatives Market Insights
Data from derivatives platforms shows stable open interest for both BTC and ETH, with slight increases in trading volume—indicating healthy market participation without excessive leverage buildup. Futures basis (the premium of futures prices over spot) has risen modestly, suggesting growing institutional appetite.
Meanwhile, Tether (USDT) traded at approximately 6.67 CNY on Huobi’s OTC market, reflecting stable demand in key Asian regions.
DeFi Activity Rebounds Slightly
Decentralized finance continues to show resilience. Total Value Locked (TVL) across DeFi protocols rose to $617.1 billion**, with real economic value locked increasing to **$447.5 billion. While top projects saw minimal changes in holdings, overall DeFi transaction volume dipped slightly to $21.5 billion.
Notably, 1inch V2 experienced a significant decline in volume—down 31.38%—possibly due to user migration toward newer versions or competing aggregators.
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 a secure digital dollar solution.
Q: Does Visa now accept cryptocurrency directly?
A: No—Visa does not accept crypto from consumers directly. Instead, it allows financial partners to use USDC to settle transactions behind the scenes, improving efficiency without changing how end-users pay.
Q: How does USDC settlement benefit merchants?
A: Merchants benefit from faster fund availability, lower fees, and reduced counterparty risk since settlements occur digitally and nearly instantly via blockchain.
Q: Is this the end of traditional banking in payments?
A: Not at all. Rather than replacing banks, this integration enhances their capabilities by combining traditional networks with modern blockchain infrastructure.
Q: Can I use USDC on my current Visa card?
A: Not yet for most users. The feature is currently in pilot with select partners like Crypto.com, but broader rollout is expected later in 2025.
Q: What are the risks of using stablecoins for settlement?
A: Risks include regulatory scrutiny, smart contract vulnerabilities, and potential de-pegging events—though USDC has maintained stability through multiple market cycles thanks to strong oversight.
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