Visa Expands Stablecoin Settlement to Solana for Faster and Lower-Cost Transactions
Visa is taking a step further in its adoption of digital currencies by expanding its stablecoin settlement to include Solana. This move comes after Visa’s successful collaboration with Crypto.com and Circle, using USDC and the Ethereum blockchain for quick settlement between issuers and acquirers. By adding support for Solana, Visa aims to provide clients with faster and more cost-effective transactions when utilizing stablecoins.
Cuy Sheffield, head of Crypto at Visa, explains, “By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we’re improving cross-border settlement speed and offering a modern option for clients to send or receive funds from Visa’s treasury.” This expansion allows Visa to send USDC funds onchain to Worldpay and Nuvei, who can then facilitate payments in stablecoins for their merchants. This process eliminates the need for lengthy fiat currency conversions, making settlement quicker and more efficient.
Visa’s Modernization of Treasury and Settlement Systems for the Web3 Era
Visa’s adoption of crypto-based settlement reflects its commitment to modernizing its treasury and settlement systems for the Web3 era. The company believes that stablecoins like USDC offer the potential for near-instant settlement, compared to traditional bank transfers. By embracing this technology, Visa aims to position itself at the forefront of digital currency adoption.
Visa has selected Worldpay and Nuvei as partners for testing new settlement capabilities due to their diverse merchant bases. These acquirers’ merchants are increasingly engaging with the crypto economy through NFT marketplaces, crypto on-ramps, and blockchain-based games. Philip Fayer, Chair and CEO of Nuvei, emphasizes that stablecoins like USDC are cutting-edge payment technology that can drive the growth of online businesses worldwide.
Hot Take: Visa’s Expansion Signals a Rapidly Evolving Commerce Landscape
Visa’s expansion of stablecoin settlement to include Solana, along with its partnerships with Worldpay and Nuvei, demonstrates the company’s recognition of the changing needs of global merchants in today’s rapidly evolving commerce landscape. By offering faster and more cost-effective transactions, Visa is positioning itself as a key player in the adoption of digital currencies. This move not only benefits Visa and its partners but also paves the way for broader acceptance of stablecoins and blockchain technology in the mainstream financial industry.
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