Outstanding reporting by Michael del Castillo of Forbes. He writes: “Credit card giant Visa today announced it is connecting its global payments network of 60 million merchants to the U.S. Dollar Coin (USDC) developed by Circle on the Ethereum blockchain. The digital currency is now valued at $2.9 billion.
While Visa itself won’t custody the digital currency, the partnership will see Circle working with Visa to help select Visa credit card issuers start integrating the USDC software into their platforms & send and receive USDC payments.
“This will be the first corporate card that will allow businesses to be able to spend a balance of USDC,” says Visa head of crypto Cuy Sheffield. “And so, we think that this will significantly increase the utility that USDC can have for Circle’s business clients.”
The partnership, in conjunction with an earlier $40 million investment Visa led in a crypto startup for holding assets issued on a blockchain, and an increasing amount of work with central banks, is the latest evidence the credit card giant sees the tech first popularized by bitcoin as a crucial part of the future of money.
Blockchain commutes trust. Trust reduces friction. Less friction means efficient markets. This Visa-USDC story one is a good one.