Visa to provide USDC settlement service to U.S. banks

Uk Jin

Summary

Global payments company Visa said it will provide payment settlement services using USDC stablecoins to U.S. banks.
This settlement will be conducted on the Solana blockchain, with Cross River Bank and Lead Bank participating as the first customers.
Visa said it plans to also support Circle's Arc network going forward.

Global payments company Visa is allowing payment settlement using stablecoins (virtual assets whose value is linked to fiat currency) for U.S. banks.

According to Bloomberg on the 16th (KST), Visa said it will allow transaction settlement using Circle's USDC in the United States. Transaction settlement will be conducted on the Solana (SOL) blockchain, and Cross River Bank and Lead Bank will participate as the first customers.

Visa has previously tested stablecoin settlement abroad, but this is the first full-scale adoption within the U.S. banking system.

Furthermore, Visa plans to support that network after the launch of Circle's blockchain 'Arc'. Fintech and crypto firms are expanding products that allow stablecoin balances to be used for card payments, and merchants will be settled in local currency as before.

Luca Cosentino, Cross River Bank's head of products, said, "Stablecoins will become a core payment rail in the long term," adding, "They will be a necessary capability for banks, not an option."