Visa, a global leader in digital payments, has announced a significant expansion of its stablecoin settlement capabilities. The company is now extending its services to the Solana blockchain and collaborating with major merchant acquirers Worldpay and Nuvei to modernize cross-border money movement.
This initiative builds on previous successful pilots that moved millions of USDC between partners across both Solana and Ethereum blockchain networks. These transactions facilitate the settlement of fiat-denominated payments authorized through VisaNet.
How Visa’s Settlement System Works
When a consumer uses a Visa card at any of the millions of merchant locations worldwide, the payment authorization is nearly instantaneous. Behind the scenes, however, funds must move securely between the consumer’s bank (the issuer) and the merchant’s bank (the acquirer). Visa’s treasury and settlement systems manage the clearing and movement of billions of transactions daily, ensuring accurate currency conversion and transfer across nearly 15,000 financial institutions and over 25 currencies.
“By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we’re helping to improve the speed of cross-border settlement,” said Cuy Sheffield, Head of Crypto at Visa.
Evolution from the Crypto.com Pilot
Visa began exploring stablecoin applications in its treasury operations as early as 2021. A key pilot involved Crypto.com, making Visa one of the first major payment networks to test stablecoin settlement on the issuance side. This collaboration successfully used USDC on the Ethereum blockchain to facilitate cross-border payments for Crypto.com’s card program in Australia.
Previously, settling cross-border purchases for Crypto.com Visa cards required multi-day currency conversion processes and expensive international wire transfers. Today, Crypto.com sends USDC directly to a Visa-managed Circle account via Ethereum, significantly reducing both time and cost.
Jeremy Allaire, Co-founder and CEO of Circle, emphasized the significance of this development: “Circle built USDC to provide a functional digital dollar that could move at the internet speed. Expanding the pilot exemplifies how pairing USDC with Visa’s innovation opens up the future of payments.”
Expanding to Acquirer Partnerships
While Visa initially focused on receiving funds from issuers via blockchain, the program now includes sending stablecoin settlements to acquirers. This expansion enables faster settlement times for merchants working with Worldpay and Nuvei, two global acquirers serving diverse sectors—including blockchain-based businesses, gaming platforms, and NFT marketplaces that prefer stablecoin settlements.
Through its Circle account, Visa can now disburse USDC payments to these acquirers, who can then route the funds to their merchants. This creates a more efficient settlement pipeline for businesses operating in the digital economy.
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Why Visa Chose Solana
As demand grew for higher-speed, lower-cost stablecoin settlements, Visa identified Solana as an ideal blockchain to support. Known for its high performance, Solana offers 400-millisecond block times and averages 400 transactions per second (TPS), frequently surging beyond 2,000 TPS during peak demand.
This makes Visa one of the first major payment companies to utilize Solana at scale for live settlement payments between clients.
Building the Future of Digital Payments
Visa’s partnerships with Worldpay and Nuvei underscore its commitment to leading innovation in the digital currency space. These collaborations aim to provide greater flexibility and efficiency in cross-border transactions.
Jim Johnson, President of Worldpay Merchant Solutions at FIS, noted: “Visa’s USDC settlement capability allows us to offer merchants more choices for receiving funds. Diversifying funding options is critical in today’s rapidly evolving commerce landscape.”
Philip Fayer, Chair and CEO of Nuvei, added: “Stablecoins are cutting-edge payments technology that can help online businesses accelerate growth. We’re excited to work with Visa to bring these capabilities to our partners.”
Frequently Asked Questions
What is stablecoin settlement?
Stablecoin settlement involves using digital currencies pegged to stable assets like the US dollar to facilitate faster and more efficient transactions. This reduces reliance on traditional banking channels and accelerates fund transfers.
How does blockchain improve cross-border payments?
Blockchain technology enables near-instant settlement, lowers transaction costs, and increases transparency. It eliminates intermediaries, reduces currency conversion delays, and operates 24/7.
Which companies are partnering with Visa for stablecoin settlements?
Visa is working with acquirers including Worldpay and Nuvei, and has previously collaborated with issuers like Crypto.com. These partnerships aim to enhance settlement speed and flexibility for merchants and financial institutions.
Why did Visa add support for Solana?
Solana offers high transaction throughput and low latency, making it suitable for large-scale settlement operations. Its performance characteristics help reduce costs and increase processing speeds compared to some older networks.
Can traditional merchants benefit from stablecoin settlements?
Yes. While particularly useful for crypto-native businesses, any merchant can benefit from faster settlement times, reduced foreign exchange costs, and improved cash flow management through stablecoin-based settlements.
Is USDC the only stablecoin supported by Visa?
Currently, Visa has publicized the use of USDC in its pilot programs and expansions. The system is designed to be compatible with digital dollars and may support additional compliant stablecoins in the future.