No wonder the stock CRCL rebounded violently
The settlement of @Visa in the U.S. is now being conducted on-chain via @USDC!
Visa's U.S. issuing banks and acquiring bank partners can now settle with Visa in USDC for near-instantaneous, always-on cash flow.
Q: How does Visa's stablecoin settlement pilot capability work in the U.S.?
It allows some U.S. issuing banks and acquiring bank partners to settle their VisaNet obligations using Circle's USDC instead of just fiat currencies. Settlements are conducted on supported blockchains, potentially enabling faster cash flow and greater operational resilience.
Q: What are the advantages of settling using stablecoins?
Funds can be quickly transferred via blockchain, including on weekends and holidays. The predictability offered by fully backed, dollar-supported assets could allow parties that can settle seven days a week to consider reducing collateral. Modern fund and liquidity management: automating cash operations and simplifying reconciliation.
Q: Who is this product designed for?
It is particularly suitable for financial institutions, fintech companies, and other entities looking to modernize settlement operations, improve liquidity timing, and build programmable cash flow experiences.
Q: How does this announcement differ from previous Visa stablecoin-related news?
Previous announcements introduced stablecoin pre-funding and payment pilot projects for Visa Direct and expanded blockchain support for stablecoin settlements. Today's announcement highlights the expansion of Visa's stablecoin settlement pilot program to the U.S., allowing U.S. issuing and acquiring institutions to directly settle Visa debts using USDC, thereby integrating stablecoins into the core settlement operations of U.S. institutional partners.
Q: Do participating issuers and acquirers settle in fiat or stablecoins?
Participating issuers and acquirers can settle using USDC, which is delivered via supported blockchains.
Q: When will more partners gain access?
Visa is currently collaborating with select U.S. partners and plans to expand partnerships by 2026. We encourage interested clients to reach out to their client teams. Visa continues to lead the evolution of digital payments—combining the power of blockchain with the reliability and reach of the world's leading payment network.
