Visa Expands USDC Settlement to U.S. Banks

Visa, in collaboration with Circle, announced the expansion of USDC settlements to U.S. banks, enabling partners to settle directly in the stablecoin. This marks a notable evolution in digital transactions and represents a step towards wider crypto integration.

Key players such as Visa, Circle, Cross River Bank, and Lead Bank are facilitating this change. Visa’s Rubail Birwadker highlighted banking partner interest, while Circle’s CEO, Jeremy Allaire, emphasized this as a milestone for USDC’s mainstream adoption and acceptance.

The move is set to transform traditional banking operations by offering faster, seven-day settlement processes and improving liquidity management. U.S. banks can benefit from streamlined transactions facilitated by the Solana  SOL +1.17% blockchain’s capabilities.

Though primarily impacting USDC, Visa’s initiative may influence market dynamics by potentially increasing USDC’s usage. The partnership with Circle is part of a broader rollout, projected to extend through 2026, and includes plans to implement Circle’s Arc Layer 1 blockchain.

Visa began testing stablecoin settlement in 2023, expanding this capability to include multiple blockchains before the U.S. launch. The international pilot experienced $3.5 billion in annualized volume, indicating market readiness and high interest.

The collaborative initiative may spur regulatory or technological advancements as banks adopt stablecoins into conventional systems. Visa launched a Stablecoins Advisory Practice to guide compliance, substantiating the strategic importance of stablecoin integration for financial institutions.

Rubail Birwadker, Global Head of Growth Products and Strategic Partnerships, Visa, stated, “Visa is expanding stablecoin settlement because our banking partners are not only asking about it – they’re preparing to use it.” (source)