Visa Integrates USDC Settlements on Solana for US Banks

By: Eliza Bennet

Visa has taken a significant step in integrating cryptocurrencies into its global financial infrastructure by launching USDC settlement services for United States-based financial institutions. This move, announced this week, marks a notable development in leveraging digital currencies, thereby opening a new chapter in the realm of traditional and digital finance integration. The services will initially involve Cross River Bank and Lead Bank as the first participants, processing settlements in USDC on the Solana blockchain, with a more extensive rollout anticipated in 2026.

The integration of USDC, a stablecoin, into Visa's settlement operations underscores the growing acceptance and reliance on digital currencies in mainstream banking and financial operations. By utilizing the Solana blockchain, Visa aims to capitalize on the network's high throughput and low transaction costs, making it an attractive choice for handling commercial payments. USDC, or USD Coin, is a stablecoin backed by traditional fiat currency, providing a stable and reliable form of digital payment.

This adaptation aligns with the broader movement towards digital finance, as financial institutions worldwide are increasingly looking to blockchain technologies to enhance efficiency and minimize costs. Circle, the issuer of USDC, recently rolled out the public testnet of its layer-1 blockchain, Arc, which Visa cites as a key platform aligning with its commercial activities. The testnet involves over 100 major global companies including major financial players such as Mastercard, BlackRock, and Goldman Sachs, positioning Visa as a critical design partner.

Visa's strategic embrace of stablecoin technologies is a significant reflection of the evolving payments landscape. With the promise of further expansion, this initiative aims to set new standards for global payment systems, ensuring that they are both resilient and adaptable to future digital advancements.