Global payment giant VISA has announced a significant expansion of its blockchain-based settlement capabilities using the USDC stablecoin. This initiative, developed in partnership with acquirers Worldpay and Nuvei, enables faster and more efficient cross-border transactions on both the Solana and Ethereum networks.
The move builds upon VISA's earlier pilot program with Crypto.com, which introduced crypto-linked debit and prepaid cards. Now, the company is scaling its stablecoin settlement solution to handle millions of dollars in transactions between financial institutions worldwide.
How VISA's Traditional Settlement System Works
When consumers use VISA cards at millions of global merchants, they experience instant payment convenience. Behind the scenes, however, these transactions require seamless fund transfers between issuing banks and merchant acquiring banks.
VISA's treasury and settlement system facilitates billions of daily transactions, ensuring accurate currency amounts are received from issuers and delivered to acquirers. This complex process currently operates across nearly 15,000 financial institutions and supports over 25 currencies globally.
The Blockchain Transformation
VISA's crypto lead, Cuy Sheffield, explains the strategic shift: "By leveraging stablecoins like USDC and global blockchain networks such as Solana and Ethereum, we're enhancing cross-border settlement capabilities. We're providing clients with modern options to send or receive funds from VISA's treasury efficiently."
The company began exploring USDC for treasury operations in 2021 through its initial pilot with Crypto.com. This made VISA one of the first major payment networks to test stablecoin settlements with an issuer.
Advantages of Blockchain Settlement
Previously, cross-border settlements for Crypto.com's VISA card transactions required days for currency conversion and international wire transfers. The new system allows Crypto.com to send USDC settlements directly to VISA's Circle-managed account via Ethereum blockchain, significantly reducing processing time and complexity.
This approach eliminates many intermediate steps traditionally required in international banking, creating a more streamlined settlement process that benefits both merchants and financial institutions.
Expanding the Ecosystem
VISA's expanded pilot now enables the company to send on-chain funds to acquirers like Worldpay and Nuvei, helping merchants improve settlement efficiency. These acquirers serve businesses across numerous industries, including:
- Blockchain and crypto economy participants
- On-ramp providers
- Gaming platforms
- NFT marketplaces
Many modern merchants prefer receiving stablecoin payments rather than traditional fiat currency. Through VISA's Circle account, the company can now manage USDC settlement payments to Worldpay and Nuvei, who subsequently distribute these funds to their merchant clients.
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Why Solana and Ethereum?
As VISA extends this capability to more clients, the need for high-performance blockchain networks becomes increasingly important. The company has added support for Solana specifically for its technical advantages:
- 400-millisecond block times
- Average throughput of 400 transactions per second (TPS)
- Peak capacity exceeding 2,000 TPS during high demand
This makes VISA one of the first major payment companies to utilize Solana at scale for real-time settlement between clients. The Ethereum network continues to serve as another foundational pillar for these transactions.
Industry Perspectives
Circle CEO Jeremy Allaire views this development as fundamental blockchain innovation: "Circle created USDC to provide a functional digital dollar that moves at internet speed while remaining secure and reliable. This expanded pilot demonstrates how USDC combined with VISA's innovation can unlock the future of payments, commerce, and financial applications."
Worldpay's President of Merchant Solutions, Jim Johnson, emphasizes the practical benefits: "VISA's USDC settlement capability enables Worldpay to bring more treasury operations in-house while providing merchants with additional collection options. In today's rapidly evolving commerce landscape, diversified collection options and flexibility are essential to meet the changing needs of global merchants."
Nuvei Chairman and CEO Philip Fayer adds: "Stablecoins like USDC represent cutting-edge payment technology that can help online businesses accelerate growth worldwide. Optimizing cross-border transactions is just one use case where businesses can benefit from stablecoins. As a global leader in payments, we constantly focus on innovation and are thrilled to partner with VISA to bring these capabilities to our partners."
The Future of Digital Settlements
As the financial industry continues digital transformation, VISA is advancing numerous new partnerships while embracing the potential of digital currency innovation. The collaborations with Worldpay and Nuvei represent significant steps toward modernizing global payment infrastructure.
This expansion reflects VISA's commitment to remaining at the forefront of digital currency and blockchain innovation while improving how money moves worldwide.
Frequently Asked Questions
What is VISA's new stablecoin initiative?
VISA is expanding its use of USDC stablecoin for settlement between financial institutions on blockchain networks. This allows faster, more efficient cross-border transactions using digital dollars on Solana and Ethereum networks.
How does blockchain settlement benefit merchants?
Merchants can receive settlements faster and with lower transaction costs compared to traditional international wire transfers. The system also reduces complexity by eliminating multiple intermediaries in the settlement process.
Which blockchain networks does VISA support?
VISA currently supports settlements on both Ethereum and Solana networks. Solana was added for its high throughput capabilities and fast block times, which are essential for payment processing.
Can traditional businesses use this settlement option?
Yes, while particularly beneficial for crypto-native businesses, traditional merchants working with participating acquirers like Worldpay and Nuvei can also opt to receive settlements in USDC where available.
Is USDC different from other stablecoins?
USDC is a regulated, fully-reserved stablecoin issued by Circle. Each USDC is backed by one U.S. dollar or equivalent assets, making it one of the most trusted stablecoins in the market.
How does this affect regular VISA card users?
Regular consumers won't notice immediate changes to their payment experience. The innovation primarily improves backend settlement processes between financial institutions, potentially leading to lower costs and improved services over time.