Visa Enables U.S. Institutions to Settle Transactions Using Circle’s USDC on Solana

Visa Inc. has announced that it will soon allow stablecoin-based settlements across its U.S. payments network, expanding its range of cryptocurrency services.

Key Takeaways

Visa will allow U.S. institutions to settle transactions using Circle's USDC on the Solana blockchain.
The initiative aims to facilitate faster fund transfers and improve liquidity management for banks.
Visa is partnering with Circle on a new Layer 1 blockchain, Arc, for high-performance on-chain activities.
This U.S. launch furthers Visa's previous stablecoin settlement pilots across various regions globally.
The stablecoin market is rapidly growing, with notable increases in market capitalization and mainstream usage.

Visa

The payments giant is set to enable U.S. financial institutions to settle transactions using Circle Internet Group Inc.'s USDC stablecoin on the Solana blockchain.

Faster Settlements for U.S. Banks

By facilitating USDC settlements, Visa aims to provide banks and fintech companies with quicker fund transfers over blockchain networks, with availability seven days a week and enhanced resilience on weekends and holidays.

The initial participating institutions include Cross River Bank and Lead Bank, both of which are currently conducting USDC transactions on the Solana blockchain with Visa. Broader access for U.S. institutions is expected to roll out by 2026.

Strengthening Blockchain Infrastructure through Arc Partnership

Visa is also enhancing its collaboration with Circle as a design partner for Arc, a new Layer 1 blockchain that is currently undergoing public testing. Arc is designed to support high-performance, large-scale commercial activities on-chain.

Visa plans to utilize Arc for USDC settlements within its network and intends to operate a validator node once the blockchain is officially launched, thereby further integrating blockchain technology into its core settlement processes.

Modernizing Treasury and Liquidity Management

Visa asserts that USDC-based settlements will provide a seven-day settlement window, enhanced liquidity management, and increased automation for participating banks. This framework aims to connect traditional payment rails with blockchain infrastructure while upholding Visa’s standards for security, compliance, and reliability.

"Financial institutions are getting ready to use stablecoins in their treasury operations," said Rubail Birwadker, Visa’s Global Head of Growth Products and Strategic Partnerships. "USDC settlement offers banks a quicker, programmable option that works seamlessly with existing systems."

Expanding on a Global Stablecoin Track Record

This latest launch in the U.S. builds on Visa’s previous stablecoin settlement pilot programs in regions such as Latin America, Europe, Asia-Pacific, and the Middle East and Africa. Visa began its experiments with USDC settlements in 2021 and became one of the first major payment networks to complete transactions in a stablecoin in 2023.

Circle regards the U.S. expansion as a significant milestone for institutional acceptance of stablecoins, while early banking partners have pointed out advantages like enhanced liquidity timing and API-driven settlements.

Visa has pledged to continue developing its stablecoin capabilities and has recently introduced a Stablecoins Advisory Practice through Visa Consulting & Analytics to assist financial institutions in evaluating and implementing stablecoin strategies.

Highlights from Binance Blockchain Week on Stablecoin Growth

During Binance Blockchain Week 2025, Binance CEO Richard Teng underscored the rapid growth of the stablecoin market, describing stablecoins as one of cryptocurrency's most effective real-world applications. He noted that the global stablecoin market capitalization surged by nearly 50% this year, and the number of wallets holding stablecoins has also increased by around 50%.

Teng emphasized transaction data as proof that stablecoins are increasingly entering the mainstream financial landscape, noting that daily transaction volumes of stablecoins have now outpaced those processed by Visa.

He attributed this expansion to improving regulatory clarity, particularly in the U.S., and pointed to initiatives in emerging markets, like Bhutan's nationwide crypto payments system built on Binance Pay, as examples of how stablecoins are becoming integral to payment infrastructure rather than merely speculative assets.