Simply put
- Visa is set to allow its U.S. partners to settle transactions using stablecoins, beginning with Solana’s USDC.
- This initiative follows a global pilot program initiated in 2023.
- The monthly issuance of stablecoins has surpassed an annual run rate of $3.5 billion.
Visa is expanding its stablecoin services to include settlements in the U.S. utilizing Circle’s USDC on the Solana blockchain.
This move will enable Visa’s U.S. banking partners, including Cross River Bank and Reed Bank, to start settling in USDC, with plans for a wider rollout by 2026.
According to Rubail Virwadkar, Visa’s global head of growth products and strategic partnerships, “Visa is expanding stablecoin payments because our banking partners are not only inquiring about stablecoin payments, but preparing to take advantage of them.”
“By bringing USDC payments to the U.S., Visa provides reliable, bank-enabled capabilities that improve financial efficiency while maintaining the security, compliance, and resiliency standards required for our network,” he stated.
Visa claims that USDC payments will quicken fund transfers, enhance settlement opportunities, and extend the usual settlement period from five business days to a full seven days.
In a significant milestone for the mainstream adoption of USDC, Visa announced that all U.S. card issuers can now make payments directly with Visa using USDC. Visa also collaborates with Circle.
Dollar Digital…
The U.S. expansion is building on Visa’s existing experience with stablecoin payments, having experimented with USDC since 2021 and officially launching it in a global trial in 2023.
Jill Gade, founder and CEO of Cross River Bank, mentioned, “Fintech and crypto innovators are increasingly asking us to incorporate stablecoins into their existing product suites. An integrated platform that natively supports both stablecoins and traditional payment networks is fundamental to how value moves globally.”
This expansion in the U.S. follows a recent announcement from Visa regarding the establishment of a stablecoin advisory practice aimed at assisting financial institutions and merchants in evaluating and implementing stablecoin strategies.
Last month, Visa started piloting the use of USDC for direct payments aimed at gig workers and has been expanding stablecoin payment services to other countries, including partnerships with other layer 1 blockchains like Stellar and Avalanche.
Visa has collaborated with Circle as an early design partner for stablecoin-focused blockchain projects. In the future, Visa intends to enable USDC payments on Arc and operate validator nodes within that network.
On the stock market, Visa Inc.’s shares saw a slight decline of about 0.5% following the opening bell, trading around $345.26. The stock has risen approximately 9.2% since the year began.
