Visa is planning to launch a new pilot program that will allow partners to settle FIAT transactions using the Ethereum (ETH) blockchain.
Revealing the news earlier today, Visa said that it has teamed up with Crypto.com to offer the crypto settlement system for FIAT operations.
This comes on the tail of a previously announced partnership between Crypto.com and Visa covering Australia. According to reports, Visa partners will be able to use USD Coin (USDC) using the payment provider's network.
To mitigate costs, Visa wants to allow partners to send USDC to Visa's Ethereum addresses to settle some transactions this way and reduce the traction that stems from using FIAT currencies all the time to carry out transfers.
Commenting on the development, Visa chief product officer Jack Forestell said: “The announcement today marks a major milestone in our ability to address the needs of FinTech managing their business in a stablecoin or cryptocurrency.”
Visa is thinking even bigger and it wants to make its system accessible to various FinTech companies as well, and those that deal specifically with Ether, Bitcoin and USDC. Visa's decision to turn to Ethereum could solve a problem that is worth billions of dollars in the company's own words, as transactions done in FIAT currencies are arguably raking up as much in fees.