Visa Introduces USDC Settlement Services for US Banks on Solana Blockchain

Summary: Visa has launched a new service for US financial institutions to settle transactions using the USDC stablecoin on the Solana blockchain. With initial involvement from Cross River Bank and Lead Bank, Visa's settlement services aim to modernize payment infrastructure and accommodate the growing demand for faster transaction processing.

Key Takeaways

Visa has introduced USDC settlement services for US banks, starting with Cross River Bank and Lead Bank.
The settlement will operate on the Solana blockchain, with plans for broader adoption in 2026.
The launch is part of Visa's efforts to update its settlement system and respond to the financial industry's interest in stablecoins.
Visa has established a new Stablecoins Advisory Practice to assist banks and fintechs in developing stablecoin products.
The company is also expanding its stablecoin settlements in regions across Central and Eastern Europe, the Middle East, and Africa.

Payment processing leader Visa is officially launching settlement services for US financial institutions using the USDC stablecoin. Announced on Tuesday, this service is initially available to two banks—Cross River Bank and Lead Bank—which have already started processing transactions with Visa on the Solana blockchain. A wider rollout for this service is projected for 2026.

This announcement coincides with the launch of the public testnet for Circle's layer-1 blockchain, known as Arc, which features partnerships with over 100 major financial players, including Visa, Mastercard, BlackRock, and Goldman Sachs. Visa has stated that it is a design partner for Arc, which offers the necessary performance and scalability for Visa's global business operations.

According to Rubail Birwadker, Visa's Global Head of Growth Products and Strategic Partnerships, financial institutions are seeking faster and programmable settlement solutions that integrate well with their existing treasury operations.

Visa launches USDC settlement for US banks on Solana blockchain

Adaptation is Key

Visa’s initiative in the US is part of a broader strategy to modernize its settlement framework. Birwadker emphasized that the adoption of stablecoins is essential for Visa to remain competitive as these digital assets become more established. He noted that banking partners are not only inquiring about stablecoins but are also preparing to implement them in their operations.

Visa is moving proactively to assist financial institutions in utilizing stablecoins. Recently, the company established a global Stablecoins Advisory Practice aimed at helping banks, merchants, and fintech companies design, launch, and manage stablecoin products.

Additionally, on November 27, Visa revealed that it has expanded its stablecoin settlement capabilities in Central and Eastern Europe, as well as the Middle East and Africa, through a partnership with crypto infrastructure provider Aquanow. This collaboration is designed to facilitate transactions using approved stablecoins like USDC, helping to minimize costs and expedite settlement times.

The strong demand from banks and payment companies has been a driving force behind Visa's initiatives. However, not all stablecoin offerings are designed exclusively for institutional use. On November 12, Visa also commenced a pilot program in the US aimed at allowing dollar-pegged stablecoin payouts to user wallets from business accounts funded with fiat currency. Visa is in the process of onboarding "select partners," with plans for broader access to follow in 2026.

In summary, Visa’s foray into USDC settlements and the creation of consulting services for stablecoins highlight its commitment to modernize payment processing and address the evolving needs of the financial sector.