Visa is taking a deeper dive into the world of cryptocurrency to speed up cross-border payments. The San Francisco-based company is expanding its stablecoin settlement capabilities by teaming up with Circle’s USDC stablecoin and the Solana blockchain, known for its high-speed performance. This move makes Visa one of the first major financial institutions to widely use the Solana network for settlements.
As a result of this collaboration, the Solana (SOL) cryptocurrency experienced a nearly 5% increase in its value. However, this news had the opposite effect on Bitcoin (BTC), causing it and the broader market to dip.
Visa is not stopping here; they’ve also initiated pilot programs with merchant acquirers Worldpay and Nuvei, two companies that handle debit and credit card payments for businesses worldwide. Clients of these acquirers can now opt for USDC stablecoin settlements instead of receiving traditional fiat currencies.
This isn’t Visa’s first foray into the cryptocurrency realm. They began experimenting with USDC for treasury operations in 2021, working alongside Crypto.com. In a pilot program, they used the Ethereum blockchain to facilitate cross-border payments made with Crypto.com Visa cards.
Cuy Sheffield, Visa’s head of crypto, explained the significance of this step. “By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we’re helping to improve the speed of cross-border settlement and providing a modern option for our clients to easily send or receive funds from Visa’s treasury,” he said.
9/ It's still early days, but Visa has already settled millions of dollars of USDC over the Ethereum and Solana blockchains between our clients. We are committed to continuing to innovate around how we move money and providing our clients modern options for settlement pic.twitter.com/pbByiMAPAY
— Cuy Sheffield (@cuysheffield) September 5, 2023
This development marks another milestone in the financial world’s increasing adoption of blockchain technology. The stablecoin market, with its digital currencies pegged to external assets, is poised for significant growth. Research firm Bernstein predicts it could reach $2.8 trillion in the next five years, especially as financial and consumer platforms worldwide harness these tokens on public blockchains for various uses, including remittances and savings in developing regions.
Visa’s move underscores the growing significance of cryptocurrencies in traditional finance, making it clear that digital currencies are not just a passing trend but rather a transformative force in the financial landscape.
