Visa is expanding its stablecoin settlement capabilities to include USDC issued on the Solana blockchain. The company has been venturing into stablecoin settlements since 2021 through its partnership with Crypto.com. This expansion allows visa to settle fiat-based payments by moving USDC tokens between partners across the Ethereum and Solana blockchains.
USDC settlements using Visa
Visa initially started experimenting with USDC settlements in partnership with Crypto.com. The trials involved using Ethereum-based USDC for settlement purposes. Following the success of the trials, Crypto.com now settles obligations for its Australian Visa cards using USDC, eliminating the need for lengthy currency conversion procedures and wire transfer costs.
The integration of Solana-based USDC into Visa’s settlement capabilities allows the company to facilitate faster cross-border settlements. The head of crypto at Visa, Cuy Sheffield, stated that leveraging blockchains like Ethereum and Solana, along with stablecoins like USDC, can significantly increase the speed of cross-border transactions.
With the integration of USDC, Visa can now transmit funds to USDC merchant acquirers such as Worldpay and Nuvei. This integration is expected to shorten settlement periods for businesses that use Visa’s services. It also provides merchants with more options for receiving funds and allows Visa to effectively manage its treasury operations.
According to Jim Johnson, president of Worldpay Merchant Solutions, Visa’s expanded USDC settlement capabilities will benefit merchants by providing them with more flexibility in receiving money and managing their finances.
For more information, read the official statement from Visa.
What is USDC?
USDC is a stablecoin pegged to the US dollar, meaning its value is intended to remain consistently close to the value of the US dollar.
What is Solana?
Solana is a high-performance blockchain platform designed for decentralized applications and cryptocurrency transactions.
How will Visa’s expansion of stablecoin settlement capabilities benefit merchants?
Visa’s expansion allows for faster and more efficient cross-border settlements, providing merchants with more options for receiving funds and managing their finances. It also eliminates the need for lengthy currency conversion procedures and wire transfer costs for international transactions.
Can other cryptocurrencies be settled using Visa’s stablecoin settlement capabilities?
Currently, Visa’s stablecoin settlement capabilities include USDC issued on both the Ethereum and Solana blockchains. It is possible that Visa may expand its capabilities to include other cryptocurrencies in the future.
What are the advantages of using stablecoins for settlement?
Stablecoins offer the advantages of faster transaction processing and reduced costs compared to traditional fiat currencies. They also provide stability in value since they are typically pegged to a stable asset, such as a fiat currency.