Visa is taking a step in advancing digital currency adoption by expanding its stablecoin settlement capabilities to the Solana blockchain network. The payments giant also announced new pilot programs with merchant acquirers Worldpay and Nuvei to explore streamlining settlement in the Circle-issued stablecoin USDC.
Visa Expands Stablecoin Settlement to Solana; Partners With Worldpay and Nuvei for Streamlined USDC Transfers
The financial entity’s latest move builds on Visa’s previous work with Crypto.com and Circle, which utilized USDC and the Ethereum blockchain for near real-time settlement between issuers and acquirers. By adding support for Solana, Visa aims to enable faster and lower-cost transactions for clients wishing to leverage stablecoins.
“By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we’re helping to improve the speed of cross-border settlement and providing a modern option for our clients to easily send or receive funds from Visa’s treasury,” said Cuy Sheffield, head of Crypto at Visa.
With the expansion, Visa plans to send USDC funds onchain to Worldpay and Nuvei, who can then route payments in stablecoins to their merchants. Traditionally, settlement for cross-border purchases requires a lengthy fiat currency conversion process. Stablecoin settlement provides a faster alternative.
“Diversifying funding options and increasing flexibility is critical to serving the changing needs of global merchants in today’s rapidly evolving commerce landscape,” said Jim Johnson, president of Worldpay Merchant Solutions.
The move comes as Visa aims to position itself at the forefront of digital currency adoption. Solana has been one of the fastest-growing layer one blockchain networks, claiming to be capable of handling over 2,000 transactions per second. However, last year, the layer one (L1) network suffered from several outages.
By embracing crypto-based settlement, Visa says it is gradually modernizing its treasury and settlement systems for the Web3 era. The payments company and partners believe stablecoins like USDC provide the potential for near-instant settlement compared to traditional bank transfers.
As global acquirers with diverse merchant bases, Visa said that Worldpay and Nuvei make ideal partners for testing new settlement capabilities. Their merchants are increasingly interacting with the crypto economy through NFT marketplaces, crypto on-ramps, and blockchain-based games, according to the press announcement.
Philip Fayer, Chair and CEO of Nuvei, stated that “stablecoins like USDC are cutting edge payments technology that can enable online businesses around the world to accelerate their growth.”
What do you think about Visa’s expansion and stablecoin settlement concepts? Share your thoughts and opinions about this subject in the comments section below.