Visa Enables Stablecoin Settlement for U.S. Banks via $USDC on Solana

Solana’s stablecoin ecosystem has reached a new milestone, with total stablecoin supply on the network climbing to $16.63 billion, an all-time high. This growth highlights Solana’s expanding role as a settlement layer for digital dollars and provides important context for Visa’s latest move to integrate stablecoins into its U.S. payment operations.

The payments giant, which has processed over $16 trillion in total volume, announced Tuesday that U.S. banks can now settle obligations using Circle’s $USDC on the Solana blockchain, marking a significant step in the convergence of traditional payment networks and blockchain-based infrastructure.

Visa Brings $USDC Settlement to the United States

Visa’s launch of $USDC settlement in the United States represents a major expansion of its stablecoin settlement pilot program. For the first time, U.S. issuer and acquirer partners can settle directly with Visa using $USDC, a fully reserved and dollar-denominated stablecoin issued by Circle. Visa designed the service to modernize its settlement layer while keeping the consumer card experience unchanged.

The company reports that its stablecoin settlement activity has already reached more than $3.5 billion in annualized volume as of November 30. Visa views the U.S. rollout as a continuation of pilots it has conducted across Latin America, Asia-Pacific, Central and Eastern Europe, the Middle East, and Africa. Visa first began testing how $USDC could be used inside its treasury operations in 2021. The U.S. launch brings those efforts into one of Visa’s most critical markets.

According to Visa, demand from banks and financial institutions has driven the expansion of stablecoin settlement. “Visa is expanding stablecoin settlement because our banking partners are not only asking about it - they’re preparing to use it. Financial institutions are looking for faster, programmable settlement options that integrate seamlessly with their existing treasury operations. By bringing USDC settlement to the U.S., Visa is delivering a reliable, bank‑ready capability that improves treasury efficiency while maintaining the security, compliance, and resiliency standards our network requires.” - Rubail Birwadker, Global Head of Growth Products and Strategic Partnerships, Visa.

Cross River Bank and Lead Bank serve as the first U.S. institutions to participate in the program. Both banks have begun settling with Visa in $USDC on the Solana blockchain. Visa selected Solana for its performance characteristics, including high throughput and low transaction costs, which align with the operational demands of large-scale payment settlement.

Visa plans to expand access to additional U.S. banking partners through 2026. The phased rollout allows the company and its partners to integrate blockchain-based settlement into existing treasury and liquidity workflows while maintaining regulatory and operational standards.

Visa’s U.S. stablecoin settlement framework introduces several operational changes for participating institutions. For example, it enables 7-day settlement windows, allowing banks and fintechs to settle every day of the week rather than following the traditional 5-business-day cycle. This shift improves liquidity management and reduces delays around weekends and holidays.

Deepening Ties With Circle and the Arc Blockchain

Visa has also expanded its collaboration with Circle beyond $USDC settlement on Solana. The payments company serves as a design partner for Arc, a new Layer 1 blockchain developed by Circle, which is currently in the public testnet phase. Circle designed Arc to deliver the performance and scalability required for global onchain commercial activity.

Visa has stated that it plans to use Arc for $USDC settlement within its network and to operate a validator node once the blockchain goes live. This involvement signals Visa’s intent to actively shape blockchain infrastructure that meets institutional requirements, rather than relying solely on external networks.

Notably, Circle recently secured a money services provider license in Abu Dhabi.

A Broader Trend Across Global Payments

Visa’s move comes amid a broader wave of stablecoin adoption across the payments industry. In October, Western Union announced plans to launch $USDPT, its own U.S. dollar stablecoin, on Solana. PayPal introduced its own stablecoin in 2023 and integrated it into its remittance services, while MoneyGram and Zepz have rolled out $USDC-based wallet and transfer solutions across multiple regions.

At the same time, several crypto-native firms, including Jupiter, OSL, and Streamflow, have announced new dollar-pegged stablecoins $JupUSD, $USDGO, and $USD+, respectively. These launches coincide with a material shift in the United States regulatory environment following the passage of the GENIUS Act, the country’s first federal stablecoin framework, which President Donald Trump signed into law in July. Since then, institutional and crypto-native companies alike have accelerated their stablecoin adoption efforts, reflecting growing acceptance of stablecoins as settlement and payment tools rather than purely trading instruments.

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