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Visa is allowing U.S. banks to settle payments using
Circle’s USDC stablecoin in a move highlighting how stablecoins are moving
closer to mainstream financial infrastructure as institutions look for faster,
round-the-clock payment solutions.

Visa’s Expanding Crypto Strategy

After years of experimentation, the payments giant is formally
launching the new offering within its U.S. payment network. The program, which
started with pilots abroad, lets approved issuers and acquirers send funds over
the Solana blockchain using USDC, the company mentioned on Tuesday.

Cross River Bank and Lead Bank are the first partners
on board, and broader rollout across U.S. institutions will reportedly continue through
2026. Visa said the integration allows faster fund transfers, seven-day
settlement windows, and more efficient liquidity management for banks—without
altering how consumers use their cards.

The system aims to make treasury operations as
seamless as using a blockchain wallet while maintaining the risk controls and
compliance standards expected from a global payments provider.

“Banks Are Ready for Stablecoin Settlement”

“Visa is expanding stablecoin settlement because our
banking partners are not only asking about it – they’re preparing to use it,”
said Rubail Birwadker, Global Head of Growth Products and Strategic
Partnerships, Visa. “Financial institutions are looking for faster,
programmable settlement options that integrate seamlessly with their existing
treasury operations.”

The U.S. launch builds on Visa’s international pilot
programs, which collectively surpassed an annualized $3.5 billion in stablecoin
volumes as of November. The company was among the first major payment networks
to test stablecoin settlement in 2023 and has since added more blockchains and
tokens for flexibility.

Visa is also collaborating with Circle on Arc, a new
Layer 1 blockchain designed for large-scale financial applications. Once live,
Visa plans to validate transactions on Arc and use it for future settlements. Early adopters Cross River Bank and Lead Bank see the
potential in merging legacy payment systems with blockchain.

Visa’s Advisory Arm Tackles Stablecoin Strategy

To complement the rollout, Visa Consulting &
Analytics launched a Stablecoins Advisory Practice to guide institutions
through implementation and compliance. The move reflects growing demand from
banks and fintechs exploring blockchain-based settlement and integrating
tokenized money into regulated financial structures.

As Visa extends USDC settlement across the U.S., its
strategy signals a shift in how traditional finance interacts with digital
assets—a movement where blockchain infrastructure no longer sits outside the
payment system but becomes part of its foundation.

This article was written by Jared Kirui at www.financemagnates.com.

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