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Visa, the global payment giant, is deepening its push into blockchain-based payments by enabling U.S. banks to settle transactions using Circle’s dollar-pegged stablecoin, USDC, on the Solana blockchain.
The move highlights how stablecoins are evolving from crypto-native instruments into practical settlement tools for mainstream finance. Regulatory clarity around stablecoins improves in the U.S. thereby boosting institutional confidence in the asset.
For U.S. banks, settling in USDC offers more efficient liquidity management. It allows institutions to move funds in near real time, which reduces operational friction and improves capital efficiency. This capability is particularly relevant for treasury operations, cross-border payments, and merchant settlement processes that benefit from faster settlement.
Initial participants include Cross River Bank and Lead Bank, both of which have begun settling transactions with Visa in USDC over Solana. These early use cases demonstrate how blockchain-based settlement can operate alongside existing systems, rather than replacing them outright.
Additionally, Visa’s expansion into stablecoin settlement reinforces a growing trend across the payments industry. Stablecoins are steadily becoming part of core financial infrastructure, not just tools for crypto markets.
“Financial institutions are looking for faster, programmable settlement options that integrate seamlessly with their existing treasury operations. By bringing USDC settlement to the U.S., Visa is delivering a reliable, bank‑ready capability that improves treasury efficiency while maintaining the security, compliance and resiliency standards our network requires,” Rubail Birwadker, Global Head of Growth Products and Strategic Partnerships at Visa said.
As major players like Visa integrate blockchain settlement into their networks, competitors may feel pressure to explore similar solutions. Consequently, the divide between traditional payments and digital assets continues to narrow.
Visa’s choice of USDC reflects the stablecoin’s reputation as a regulated, dollar-backed digital asset designed for institutional use. Issued by Circle and backed by cash and short-term U.S. Treasuries, USDC offers price stability and transparency, which are critical for large-scale settlement. Notably, Visa is a design partner for Circle’s upcoming Arc blockchain and will support USDC settlement on it once launched.
Meanwhile, Solana provides the technical capacity to support Visa’s scale. With high throughput, low transaction fees, and fast confirmation times, the network enables efficient settlement even outside traditional banking hours.
The post Visa Brings USDC Settlement to Solana for U.S. Banks appeared first on CoinTab News.
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