Visa is deepening its exploration of cryptocurrency to enhance the speed of cross-border payment transactions. In a significant development, the company has expanded its stablecoin settlement capabilities using Circle’s USDC to the Solana blockchain, aiming to leverage its high-performance infrastructure.
According to a recent announcement, Visa is among the first major financial institutions to adopt the Solana network for large-scale settlement operations. This move represents a continued effort to integrate blockchain technology into traditional financial systems for improved efficiency and global interoperability.
Following the news, Solana’s native token, SOL, saw a price increase of nearly 2%, even as broader cryptocurrency market indices trended downward.
Expanding Stablecoin Settlement with USDC
Visa has partnered with leading merchant acquirers Worldpay and Nuvei to pilot a new program that allows businesses to receive settlements in USDC—a dollar-denominated stablecoin—instead of traditional fiat currency. This initiative is designed to streamline payment processes for international merchants who use Visa’s debit and credit card services.
The expansion to Solana builds on Visa’s earlier experiments with stablecoin settlements. In 2021, the company launched a pilot program with Crypto.com using the Ethereum blockchain to settle cross-border transactions made with Crypto.com Visa cards.
Cuy Sheffield, Head of Crypto at Visa, emphasized the strategic value of this development:
“By leveraging stablecoins like USDC and global blockchain networks such as Solana and Ethereum, we’re helping to increase the speed of cross-border settlements and providing our clients with more options to send or receive funds seamlessly.”
The Growing Role of Stablecoins in Global Finance
Stablecoins represent a critical segment within the cryptocurrency market, designed to maintain a stable value by pegging to external assets like the U.S. dollar. They are increasingly used for remittances, savings, and as a medium of exchange—especially in regions with limited access to traditional banking.
This move by Visa is part of a broader trend among financial and consumer platforms adopting tokenized assets on public blockchains to facilitate value exchange. According to research firm Bernstein, the stablecoin market could grow to $2.8 trillion in the next five years as more institutions enter the space.
Other major players are also making strides. For example, fintech giant PayPal recently launched its own Ethereum-based stablecoin, PYUSD, further validating the potential of blockchain-based digital currencies.
Why Solana?
Solana is known for its high throughput and low transaction costs, making it an attractive network for applications requiring fast and affordable settlements. Visa’s integration with Solana underscores the growing institutional confidence in alternative blockchains beyond Ethereum, particularly for use cases demanding scalability.
This partnership not only enhances Visa’s operational capabilities but also strengthens Solana’s position as a leading blockchain for enterprise adoption.
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Frequently Asked Questions
What is USDC?
USDC is a U.S. dollar-backed stablecoin issued by Circle. It is fully regulated and redeemable 1:1 for U.S. dollars, making it a trusted digital currency for individuals and institutions.
How does Visa use blockchain for settlements?
Visa uses blockchain networks like Solana and Ethereum to process cross-border transactions more efficiently. By settling payments in stablecoins like USDC, Visa reduces reliance on traditional banking rails, lowering costs and transaction times.
Why did Visa choose Solana?
Solana offers high transaction speeds and low fees, which are essential for scaling payment settlements. Its performance characteristics make it suitable for handling Visa’s large transaction volumes.
Are stablecoins regulated?
Yes, reputable stablecoins like USDC comply with financial regulations and are regularly audited to ensure transparency and full backing of reserves.
What does this mean for merchants?
Merchants working with Visa can now opt to receive settlements in USDC, enabling faster access to funds and reducing currency conversion hassles for international transactions.
Will Visa support other blockchains?
While Visa is currently using Ethereum and Solana, the company may integrate additional blockchains in the future to further enhance flexibility and reach.
Visa’s adoption of Solana and USDC marks a notable milestone in the convergence of traditional finance and blockchain technology. By improving the efficiency and flexibility of cross-border payments, Visa is not only modernizing its own infrastructure but also encouraging wider acceptance of digital assets in mainstream finance.