Visa to allow payment settlement using cryptocurrency
The payment system provider will use USD Coin to settle transactions
Visa Inc. said on Monday it will allow customers to settle transactions on its payment network in cryptocurrency.
The company will pilot the use of the stablecoin USD Coin to settle transactions over Ethereum, an open-source blockchain network. The program is being offered with the help of partner brokerage platform Crypto.com and the digital-asset bank Anchorage. More partners are expected to be included in the program later this year.
USD Coin is pegged directly to the U.S. dollar.
The announcement sent the price of bitcoin, ethereum and other digital currencies higher with the global cryptocurrency market capitalization rising 3.7% to $1.82 trillion, according to CoinMarketCap.com.
Cryptocurrencies have recently become more widely accepted by Corporate America.
Tesla Inc. earlier this month announced customers could pay for vehicles with bitcoin.
That, after the electric-car maker last month announced the purchase of $1.5 billion of bitcoin as a way to diversify its cash holdings.
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Enterprise software provider MicroStrategy Inc. and digital-payment company Square Inc. have also recently announced bitcoin purchases.
Bitcoin is also gaining more respect as an investment class on Wall Street, where firms including BlackRock Inc. and Morgan Stanley have begun investing in the cryptocurrency.