Global payments giant Visa has launched a project aimed at becoming a “global adapter” of blockchains that can connect multiple cryptocurrencies, stablecoins, and digital bank currencies.
According to an official announcement on September 30, the Visa team is working on the Common Payments Channel (UPC) initiative, a blockchain interoperability hub that connects multiple blockchain networks and enables the transfer of digital assets from various protocols and wallets .
“Imagine sharing a check with your friends when everyone at the table uses a different currency – some use CBDCs like the Swedish eKrona and others prefer a private stablecoin like USDC,” wrote Visa, adding one such tool “Could also become a reality” in the not too distant future with the UPC project.
Developed by Visa’s product and research team, the UPC project is designed to set up dedicated payment channels between different blockchain networks, connect CBDC networks between countries, and connect CBDCs to networks.
The Visa team started working on the UPC concept in 2018 and developed an interoperability framework that should run independently of the underlying blockchain mechanisms.
Related: Microsoft Receives US Patent for “Ledger-Independent Token Service”
“Ultimately, the UPC solution aims to function as a network of blockchain networks and add value to so many forms of monetary transactions, regardless of whether they come from the Visa network or beyond,” the announcement said .
As one of the world’s largest payment companies, Visa took a giant leap into the crypto industry in 2020, partnering with blockchain firm Circle to support stablecoin USD Coin (USDC) on several specific credit cards. Since then, the company has reiterated its commitment to crypto and fiat payments on the rise, with a particular focus on stablecoin integration.