Visa Inc. has announced a major expansion of its stablecoin settlement infrastructure, enabling U.S. banks and financial institutions to settle transactions using Circle’s USD Coin (USDC) on blockchain networks — including Solana — as part of its ongoing strategy to modernize payments and liquidity management. The move expands Visa’s on-chain settlement options for institutional clients and reflects growing demand for digital-asset-enabled payment rails.
The initiative lets U.S. issuers and acquirers settle obligations in USDC instead of relying solely on traditional fiat rails, helping institutions manage treasury operations more flexibly and potentially reduce settlement times and costs. Visa’s expanded stablecoin settlement runs on supported blockchains with Solana offering faster and lower-cost transaction capabilities compared with conventional rails.
How the stablecoin settlement works
Under the new framework, participating financial institutions can settle Visa obligations in USDC directly via supported blockchain networks — including Solana — which provides 7-day settlement windows rather than being restricted to standard banking hours. The settlement process uses Circle’s USDC, a dollar-pegged stablecoin already widely adopted by banks and crypto innovators for digital payments and liquidity transfers.
Visa’s settlement expansion allows treasury and payment flows to be modernized by using blockchain-based settlement rails that operate outside traditional banking cutoff times, a shift that could improve liquidity management for banks and fintechs.
Strategic context and implementation
This development builds on Visa’s earlier pilots and integrations, where the company explored stablecoin settlement with partners such as Crypto.com, and expanded its platform to support stablecoins and multiple blockchains. Visa’s settlement volume with stablecoins has grown significantly, with annualized run rates exceeding several billion dollars as institutions adopt these rails.
The U.S. rollout complements similar initiatives in other regions and reflects Wall Street’s broader interest in embracing blockchain-based settlement mechanisms that can run on platforms like Solana and Ethereum. Industry analysts point to these integrations as part of a wider trend where major payment networks and traditional financial players are aligning stablecoin infrastructure with conventional financial operations.
Reactions and future implications
Market observers say Visa’s initiative could accelerate institutional adoption of stablecoins for settlement and treasury functions, particularly as regulatory clarity around digital assets improves. The ability to settle with USDC — one of the most widely used regulated stablecoins — may also encourage other banks and payment providers to explore similar blockchain-based settlement models.
However, some analysts caution that broader adoption will depend on continued regulatory guidance and robust risk management frameworks to ensure stablecoin settlement is both secure and compliant with anti-money-laundering and financial-crime regulations.
What to watch next
- Institutional uptake: How many banks and fintech firms adopt stablecoin settlement via Visa’s expanded rails.
- Regulatory developments: Whether U.S. and global regulators provide further clarity that supports institutional use of stablecoins in settlement.
- Settlement efficiency: Potential impacts on cross-border and domestic treasury operations as blockchain-based settlement scales.
Sources: Reporting is based on Visa’s recent expansion of stablecoin settlement infrastructure and market coverage outlining adoption of USDC and Solana for institutional payments.
Note: Stablecoins and blockchain settlement systems remain subject to regulatory requirements and financial institution compliance standards.
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