Global payment leader Visa is enhancing its cryptocurrency initiatives to accelerate cross-border transactions. In a September 5 announcement, Visa revealed its support for Circle’s USD Coin (USDC) stablecoin on the Solana blockchain, citing its high-speed processing capabilities. This expansion strengthens Visa’s stablecoin settlement services.
According to Visa, this move positions the company among the first major financial institutions to leverage the Solana network for large-scale payment settlements.
Following the news, Solana’s SOL token surged nearly 2%, outperforming Bitcoin (BTC) and the broader crypto market tracked by the CoinDesk Market Index (CMI), which saw a decline.
Testing USDC Receivables
Visa has partnered with acquirers Worldpay and Nuvei—companies that process debit/credit card payments for businesses worldwide—to launch a pilot program. Clients of these firms can now opt for USDC settlements instead of traditional fiat currencies.
Visa began testing USDC transactions in 2021 through a collaboration with Crypto.com, using Ethereum to settle cross-border Visa card payments.
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Cuy Sheffield, Visa’s Head of Crypto, stated:
"By leveraging stablecoins like USDC and global blockchain networks such as Solana and Ethereum, we’re advancing cross-border payment efficiency and offering clients modern options to send/receive funds from Visa’s treasury."
"Visa has already settled millions in USDC across Ethereum and Solana. We’re committed to innovating money movement and providing cutting-edge settlement solutions."
— Cuy Sheffield (September 5, 2023)
Stablecoin Market Growth Potential
This development marks a milestone for traditional financial institutions adopting blockchain. Investment firm Bernstein predicts the stablecoin market could reach $2.8 trillion within five years as global platforms integrate crypto-assets for value exchange.
Stablecoins are increasingly used for remittances and savings in emerging markets. PayPal recently launched its Ethereum-based PYUSD stablecoin, signaling broader industry adoption.
FAQs
1. Why did Visa choose Solana for USDC settlements?
Solana’s high throughput and low transaction costs make it ideal for scalable payment solutions, aligning with Visa’s need for efficiency.
2. How does USDC improve cross-border payments?
USDC enables near-instant settlements 24/7, bypassing traditional banking delays and currency conversion hurdles.
3. What’s the significance of Visa’s stablecoin adoption?
It validates blockchain’s role in mainstream finance, encouraging institutional participation in digital asset ecosystems.
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Edited by Lin Lianan | Original source: CoinDesk
### Keywords
- Visa
- Solana
- USDC
- Stablecoin
- Cross-border payments
- Blockchain
- Cryptocurrency
- Digital assets