Revolutionizing Cross-Border Payments: Visa’s Expansion of Stablecoin Capabilities with USDC on Solana Blockchain

FlavienSeptember 6, 2023

1 minute read

Revolutionizing Cross-Border Payments Visa's Expansion of Stablecoin Capabilities with USDC on Solana Blockchain

In a significant step towards the integration of traditional finance and Web3, Visa, the global payments processor, has extended support for USD Coin (USDC) payments settled on the Solana blockchain. This comes as Visa’s offering of the stablecoin begins to widen.

Efficient Cross-Border Payment Settlements

Visa’s adoption of USDC is aimed at improving the efficiency of cross-border settlement, significantly reducing the complexity associated with international wire transfers. The integration of USDC issued on Ethereum and Solana into Visa’s ecosystem allows for leveraging Visa’s treasury and settlement systems, thereby bridging traditional finance with Web3.

Live pilots involving issuers and acquirers are being carried out by Visa, moving millions of USDC between partners across the Ethereum and Solana blockchains to settle fiat-based payments.

Partnerships and Integrations

Visa’s USDC push began in 2021 when it collaborated with Crypto.com to test stablecoin settlement on the issuance side. This process involved using Ethereum-based USDC to receive payments from Crypto.com for a card program based in Australia.

The partnership also saw Crypto.com employing Visa treasury-managed account with USD Coin issuer Circle to dispatch USDC across borders on the Ethereum blockchain. This significantly cuts down on the time and complexity associated with international wire transfers.

Subsequent to those successful pilots, Visa has partnered with merchant payment processors Worldpay and Nuvei, leading to the integration of USDC with their platforms. This integration is expected to lower settlement times for merchants using their services.

1/ We are excited to announce that Visa has expanded our stablecoin settlement capabilities to merchant acquirers launching pilots with @Worldpay_Global and @Nuvei utilizing the Solana blockchainhttps://t.co/E0TjMO5xiH

— Cuy Sheffield (@cuysheffield) September 5, 2023

Future Implications and Opportunities

The expansion of USDC settlement capabilities is seen as a significant step in broadening the scope of digital payments. It promises to provide merchants with more choices for receiving funds and better managing their treasury operations.

This advancement aligns with the rising interest of traditional financial players in the potential of blockchain technology. With more traditional players recognizing the potential of stablecoins, the future of digital blockchain-based transactions looks promising.

The partnership between Visa and merchant payment processors marks a fundamental blockchain innovation that could revolutionize payments and commerce.

The enhanced stablecoin capabilities of Visa signals a new era in digital payments, enabling direct transactions between stablecoins and traditional fiat currencies. With the fusion of technology and traditional finance, cross-border payments are set to become more efficient and cost-effective.

Key Points

Visa has extended support for USD Coin (USDC) payments settled on the Solana blockchain.
The payment processor is carrying out live pilots with issuers and acquirers, testing the integration of USDC in the payment process.
The embracing of stablecoin USDC is set to improve the efficiency of cross-border settlements.
Visa has partnered with merchant payment processors Worldpay and Nuvei for the integration of USDC.
The expansion of USDC settlement capabilities will provide more choices for merchants and improve treasury operations.