Visa unveils UPC for blockchain
Visa is working on a universal payment channel project that connects blockchain networks to a variety of cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs).
As the company announced Thursday, September 30, the payments giant’s research and product teams are working on a Universal Payment Channel (UPC) initiative, which is a blockchain interoperability hub that connects blockchain networks and enables digital asset transfers.
“Imagine sharing the check with your friends, when everyone at the table is using a different type of money – some using CBDC like Swedish eKrona, and others preferring a private stablecoin like USDC,” Visa said in its announcement. The company added that this type of tool “may well be a reality” in the “not too distant future” with the UPC project.
The project is designed to create dedicated payment channels between blockchain networks, connecting CBDC networks across countries as well as with private stablecoin networks, according to the announcement.
Visa’s research team began working on the UPC concept in 2018, developing an interoperability framework that would work independently of the underlying blockchain mechanisms. “Ultimately, the UPC solution aims to serve as a network of blockchain networks – adding value to multiple forms of money movement, whether they originate from the Visa network or beyond,” Visa said in its announcement.
Read more: Visa teams up with Circle on USDC Digital Currency Corporate Card
Last year, Visa announced that it was linking its international payments network to Circle’s US Dollar Coin (UDSC). The collaboration saw Visa provide a credit card that allows businesses to make and receive payments with digital currency.
“This will be the first corporate card that will allow businesses to spend a USDDC balance,” said Cuy Sheffield, Cuy Sheffield, head of crypto at Visa, at the time.
Read more: Visa Expands Ecosystem For Encrypted Cards As Spend Surpasses $ 1 Billion
In July, Visa announced that it had formed partnerships with more than 50 cryptocurrency platforms and exchanges to enable end users to spend digital currencies through crypto-linked cards, with those customers spending more than $ 1 billion in the world. during the first semester of 2021.