On Tuesday, September 5, Visa, the global payments giant, unveiled plans to extend its USDC (USD Coin) settlement pilot to the Solana blockchain network. By harnessing Solana’s blockchain capabilities, Visa aims to facilitate instant cross-border settlements in the USDC stablecoin.
This move reflects Visa’s commitment to advancing blockchain technology and its potential to revolutionize cross-border payment processes.
Visa’s Strategic Collaboration
Visa is collaborating with merchant acquirers Nuvei and Worldpay to implement this initiative. The company has already conducted live pilot programs, successfully transferring millions of USDC across both the Solana and Ethereum blockchain networks to settle fiat-denominated payments approved over VisaNet.
Instant Payment Authorizations with Blockchain
Visa’s integration of blockchain technology ensures that consumers using Visa cards at any global merchant accepting Visa experience the convenience of instant payment authorizations. However, behind the scenes, the actual fund transfer between customers’ banks and merchant banks may still take time.
Further, Visa’s Treasury and settlement systems play a pivotal role in clearing, settling, and managing daily transactions worth billions of dollars. The adoption of blockchain platforms like Solana is expected to reduce settlement periods for cross-border payments.
Cuy Sheffield’s Insights
Cuy Sheffield, Visa’s Head of Crypto, emphasized the company’s commitment to digital currency and blockchain innovation. Also, he highlighted the role of stablecoins like USDC and the potential of global blockchain networks like Solana and Ethereum in improving cross-border settlement speeds.
In addition, Sheffield stated,
Visa is committed to being on the forefront of digital currency and blockchain innovation and leveraging these new technologies to help improve the way we move money.
Visa’s Focus on Stablecoin Settlements
Visa, along with its competitor Mastercard, has been actively exploring blockchain and stablecoin technologies. Also, earlier in 2023, Cuy Sheffield revealed Visa’s efforts to create a “muscle memory” for stablecoins, enabling users to convert their crypto assets into traditional fiat currencies seamlessly.
Further, Visa has also been striving to integrate with Ethereum for automated payments and has made significant investments in global settlements involving digital assets and traditional fiat currencies.
Moreover, this strategic focus aims to establish Visa’s expertise not only in converting between USD and Euros, but also in facilitating conversions between conventional fiat currencies and tokenized equivalents like stablecoins, strengthening its foundation in this critical aspect of the financial industry.
Read More:
Singapore Secures Top Spot as Premier-Friendly Destination for Investment Migration
Coinbase Introduces Cryptocurrency Lending Platform for American Institutional Investors