Enhancing Stablecoin Transactions via Visa Collaboration, Rain Simplifies Settlement Procedures Automatically
📣 Here's some exciting news about the modernization of payment systems! The global card issuing platform, Rain, has teamed up with Visa's pilot program, flying the flag for crypto settlement with USDC. This partnership represents a game-changer in how transactions can move onchain, with round-the-clock, real-time settlement options available 365 days a year.
💡 It's worth knowing:- Rain swapped all Visa card settlement to USDC.- Tokenized receivables boost transparency and capital efficiency.- Visa's 24/7 settlement process now runs on blockchain using stablecoins.
Rain declared that it no longer relies on traditional banking hours for Visa card transactions, as they now settle using USDC. The new method operates 24/7, allowing for swift transactions without the constraints of banking hours.
Visa continues to clear transactions via merchant acquirers, but Rain employs its stablecoin infrastructure to complete onchain settlement. The company employs a tech stack capable of handling stablecoin activity across various blockchains, ensuring instant transaction finality.
Rain has also ventured into the tokenization of credit card receivables, leading to more transparent systems and speedier product launches for fintech partners. Tokenized receivables offer capital providers stronger collateral and structured repayments via smart contracts.
💰 To finance its operations, Rain resorted to a combo of equity funding and stablecoin borrowing. A network of capital partners funds the settlement activities through closed-loop lending, with transparent and automated repayments. This method lowers capital costs and extends credit options in less-developed financial environments.
"By joining Visa's USDC settlement program, we can now set the wheels in motion for 7-day-a-week, 365-day-a-year settlements, operating outside of traditional banking hours," stated Rain's co-founder and CEO, Farooq Malik. He added, "USDC settlement increases efficiency, requiring less collateral while maintaining protection for counterparties."
Visa sees this partnership as a promising leap forward. "Merging money transactions across borders has always been complex," commented Rubail Birwadker, Visa's Head of Growth Products and Partnerships. "But blockchain technology and stablecoins are making significant strides towards changing the status quo."
Rain plans to continue expanding its utilization of stablecoins, introducing tools like asset-agnostic settlement and blockchain-level permissioning. The goal is to bring fully onchain credit infrastructure to fintechs and digital wallets worldwide. Stay tuned for more developments in the world of crypto payments!
- Rain's partnership with Visa's USDC settlement program allows for 7-day-a-week, 365-day-a-year settlements, reducing the dependence on traditional banking hours.
- The new 24/7 settlement process, operated by Rain, uses blockchain technology and stablecoins, thereby increasing efficiency and requiring less collateral while maintaining protection for counterparties.
- Rain, in an endeavor to boost transparency and capital efficiency, has tokenized its credit card receivables, offering capital providers stronger collateral and structured repayments via smart contracts.
- To finance its operations, Rain employs a combination of equity funding and stablecoin borrowing, using a network of capital partners for closed-loop lending that lowers capital costs and extends credit options in less-developed financial environments.
