U.S. card payments giant Visa is among the most influential and far-reaching companies in the world. Circle’s USDC is among the most popular stablecoin projects in Ethereum’s booming decentralized finance ecosystem.
Take note, then, because the two entities are partnering up to bring USDC payments into Visa’s sprawling network of +60 million merchants.
Announced Wednesday, Dec. 2nd, the partnership represents a huge legitimizing advancement for USDC, stablecoins in general, and Ethereum as the underlying decentralized infrastructure making it all possible. Yet the announcement also came on the same day a draft bill was introduced in the U.S. that, if passed, would have chilling effects on stablecoin efforts in America.
Accordingly, let’s break down what these big opposing developments represent for the cryptoeconomy going forward.
Visa Adding USDC to Payments Network
USDC is the second-largest stablecoin right now, its ~$3 billion market capitalization representing roughly 12% of the total stablecoin economy’s current $25.5 billion market cap.
Per Circle’s new partnership with Visa, then, the payments giant is going to begin aiding an initial set of Visa card issuers with onboarding USDC functionalities into their systems. Eventually, this program will be expanded to allow businesses to transact internationally with any Visa-supported companies.
As Visa’s lead cryptocurrency executive Cuy Sheffield noted on the news:
“This will be the first corporate card that will allow businesses to be able to spend a balance of USDC. And so we think that this will significantly increase the utility that USDC can have for Circle’s business clients […] We continue to think of Visa as a network of networks. Blockchain networks and stablecoins, like USDC, are just additional networks. So we think that there’s a significant value [here] that Visa can provide to our clients.”
This is a big deal as such, as it’s the latest high-profile example that stablecoins and…