Visa has taken a significant step forward in its stablecoin settlement capabilities by integrating USDC issued on the Solana blockchain into its payment ecosystem. This expansion builds on its earlier experiments with Ethereum-based USDC and marks a pivotal shift toward faster, blockchain-powered cross-border transactions.
Visa’s Journey with USDC Settlements
Early Experiments (2021–2023)
- Initial Partnership: Visa first explored USDC settlements in 2021 through a collaboration with Crypto.com, focusing on stablecoin-based issuer settlements.
- Pilot Program: Crypto.com’s Australian card program used Ethereum-based USDC to settle cross-border transactions, bypassing traditional wire transfers and currency conversions.
- Results: The trial reduced costs and settlement times, leading Crypto.com to adopt USDC for its Australian Visa card obligations.
Expansion to Solana
Visa now supports USDC issued on both Ethereum and Solana, enabling acquirers like Worldpay and Nuvei to pilot Solana-based settlements. This integration leverages blockchain speed for merchant payouts while maintaining compatibility with Visa’s fiat infrastructure.
How Visa’s USDC Settlement Works
- Cross-Blockchain Transfers:
Visa moves millions of USDC tokens between partners across Ethereum and Solana during live pilots. Merchant Benefits:
- Faster Settlements: USDC reduces delays in cross-border transactions.
- Cost Efficiency: Eliminates intermediary banks and currency conversions.
- Treasury Integration:
Solana-based USDC connects Visa’s traditional finance systems with Web3-friendly payment rails.
Cuy Sheffield, Visa’s Head of Crypto:
“Stablecoins like USDC and blockchains such as Solana or Ethereum accelerate cross-border settlements, bridging gaps between traditional finance and digital currency ecosystems.”
Key Advantages for Businesses
| Feature | Benefit |
|---|---|
| Multi-Blockchain Support | Flexibility to use Ethereum or Solana-based USDC. |
| Reduced Settlement Times | Near real-time transfers for merchants. |
| Treasury Optimization | Streamlined liquidity management for acquirers like Worldpay. |
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Future Outlook
Visa’s adoption of Solana-based USDC signals broader acceptance of blockchain efficiency in traditional payments. Future integrations may include:
- More merchant acquirers.
- Additional stablecoins or blockchains.
FAQs
Q: How does USDC improve Visa card settlements?
A: USDC bypasses slow wire transfers, enabling direct, low-cost settlements via blockchain.
Q: Why did Visa choose Solana?
A: Solana offers high throughput and low fees, complementing Ethereum for scalable USDC transfers.
Q: Can merchants receive fiat instead of USDC?
A: Yes—Visa converts USDC to fiat for merchants preferring traditional settlements.
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