Visa, the global leader in payments, has been exploring the potential of stablecoins, a type of cryptocurrency that is pegged to a fiat currency, such as the US dollar. Stablecoins offer the benefits of digital currencies, such as speed, cost, security, and transparency, while minimizing the drawbacks of volatility and regulatory uncertainty.
In 2021, Visa became the first major payments network to settle transactions in USD Coin (USDC), a stablecoin backed by the US dollar and powered by the Ethereum blockchain. Visa partnered with Crypto.com, one of the world’s largest crypto platforms, to enable Crypto.com to send USDC to Visa to settle a portion of its obligations for the Crypto.com Visa card program. This reduced the time and complexity of international wire transfers and currency conversions.
In 2023, Visa expanded its stablecoin settlement capabilities to the Solana blockchain, a high-performance network that can process thousands of transactions per second. Visa also collaborated with merchant acquirers Worldpay and Nuvei, which provide payment processing services to online and offline merchants. Through live pilots with issuers and acquirers, Visa has moved millions of USDC between its partners over the Solana and Ethereum blockchain networks to settle fiat-denominated payments authorized over VisaNet.
Visa’s stablecoin settlement initiative is part of its network of networks strategy, which aims to enhance all forms of money movement, whether on the Visa network or beyond. By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, Visa is helping to improve the efficiency and innovation of cross-border settlement and providing a modern option for its clients to easily send or receive funds from Visa’s treasury.
Visa is committed to being on the forefront of digital currency and blockchain innovation and leveraging these new technologies to help improve the way we move money. Visa believes that stablecoins have the potential to become a widely accepted form of digital money that can benefit consumers, merchants, and financial institutions around the world.