Visa Expands Stablecoin Settlement Capabilities to Solana Blockchain
Visa, the global payments processing giant, has announced its expansion of stablecoin settlement capabilities to the Solana blockchain. Through real-world pilot tests, Visa has successfully facilitated the seamless transfer of millions of USDC stablecoin tokens across both the Solana and Ethereum blockchain networks. These transfers were used to settle fiat currency-based payments authorized through VisaNet.
Visa’s Collaboration with Merchant Acquirers
Visa has also revealed its collaboration with merchant acquirers Worldpay and Nuvei. This initiative began when Visa explored the role of USDC in its treasury operations in 2021. The successful pilot with Crypto.com allowed Visa to experiment with stablecoin settlements from the issuer’s perspective, specifically for cross-border transactions in Australia.
As a result, the pilot eliminated the complex process involving conversions and costly international wire transfers for cross-border purchases made with Crypto.com Visa cards. Crypto.com has now transitioned to using USDC to fulfill its settlement obligations for Visa cards in Australia.
Visa’s Commitment to Innovation
Cuy Sheffield, Visa’s Head of Crypto, expressed enthusiasm about leveraging stablecoins and blockchain networks like Solana and Ethereum to enhance cross-border settlement speed and provide modern options for fund transfers. Visa aims to be at the forefront of digital currency and blockchain innovation, leveraging these technologies to improve money movement.
Tapping into Solana’s Potential
Visa’s decision to tap into Solana is driven by the growing demand for high-performance blockchains that can process stablecoin transactions quickly and cost-effectively. By utilizing Solana as a layer 1 blockchain for live settlement payments between clients, Visa has become one of the first major payment companies to do so at scale.
The Solana network has proven its reliability by maintaining uninterrupted service for over six months and achieving 100% uptime since February.
Hot Take
Visa’s expansion into the Solana blockchain for stablecoin settlement reflects the increasing adoption of cryptocurrencies and blockchain technology in the global payments industry. This move demonstrates Visa’s commitment to staying ahead of the curve and embracing innovative solutions that enhance the speed and efficiency of cross-border transactions. By leveraging stablecoins and high-performance blockchains like Solana, Visa is paving the way for a more seamless and modern payment experience.
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