Why Canaan Stock Jumped 17% This Morning

Shares of Canaan (NASDAQ: CAN) jumped as much as 17.2% higher on Monday morning. The Beijing-based developer and maker of cryptocurrency mining machines didn't have any company-specific news to share today or over the weekend, but the stock benefitted from a positive development in the crypto space.

Payment-processing giant Visa (NYSE: V) just announced that it will start to settle payments over the Ethereum (CRYPTO: ETH) network later this year. In particular, Visa's bridge between the cryptocurrency and fiat currency worlds will rely on the Ethereum-based USD Coin (CRYPTO: USDC), whose value is pegged to the U. S. Dollar through Ethereum's smart contracts.

Visa's cautious step into the blockchain market is generally seen as a positive sign for the large-scale viability of cryptocurrencies and related services, driving many cryptocurrencies higher today. Ethereum is up by 4.3% at noon, EDT. Bitcoin (CRYPTO: BTC) has gained 3.2%. The USD Coin remained as stable as ever, staying within 0.1% of yesterday's dollar value.

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Source Fool.com