USD Coin (USDC) is a stablecoin tied to the U.S. dollar, meaning that one USDC is equal to one dollar. Visa announced that it will accept these coins to settle transactions on its network in partnership with Crypto.com.
Traditionally, if a customer chooses to use a Crypto.com Visa card to pay for a coffee, the digital currency needs to be converted into traditional money. The wallet will deposit fiat currency in a bank account, to be wired to Visa at the end of the day to settle any transactions, adding cost and complexity for businesses. Visa’s latest step strips out the need to convert digital coin into traditional money in order for the transaction to be settled.