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Enhanced Stablecoin Settlement Capabilities:
Visa has extended its stablecoin settlement capabilities by integrating Circle's USDC stablecoin with the Solana (SOL) blockchain, which is renowned for its high-speed performance. The objective is to optimize cross-border payment efficiency.Visa emphasizes that it stands among the first major financial institutions to extensively employ the Solana network for settlements.
Positive Impact on Solana (SOL):2/ Visa’s addition of the Solana blockchain follows months of extensive research and evaluation of infrastructure that helps bring:
— Solana (@solana) September 5, 2023
⚡Speed of finality
🪙Negligible costs
⏫High throughput
🗺️Decentralization
Read more from @FortuneMagazine: https://t.co/4oGU3yR0F0
Following this announcement, Solana (SOL) witnessed an approximately 4% increase in its value, while Bitcoin (BTC) and the broader CoinDesk Market Index (CMI) experienced declines.
Collaborative Pilot Programs:
Visa has initiated pilot programs in collaboration with merchant acquirers Worldpay and Nuvei, both of which facilitate debit and credit card payments for global businesses.Under these programs, clients now have the option to select USDC stablecoin settlement instead of traditional fiat currencies.
Previous USDC Testing:
Visa commenced testing USDC for treasury operations in 2021. The company conducted a pilot program in partnership with Crypto.com, utilizing the Ethereum blockchain to settle cross-border payments made with Crypto.com Visa cards.
Boosting Cross-Border Settlement Speed:
Boosting Cross-Border Settlement Speed:
Cuy Sheffield, Head of Crypto at Visa, underscores the company's commitment to leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum. This approach aims to expedite cross-border settlement speed and provide clients with a contemporary and efficient solution for sending and receiving funds from Visa's treasury.
Visa's integration with Solana and the USDC stablecoin highlights the continued adoption of blockchain technology by traditional financial institutions to enhance payment processes and customer experiences.
Research firm Bernstein predicts that the stablecoin market could grow to $2.8 trillion within the next five years as global financial and consumer platforms increasingly utilize tokens on public blockchains for value exchange on their platforms. Stablecoins are a subset of cryptocurrencies with prices pegged to external assets, primarily the U.S. dollar, and are increasingly utilized for remittances and savings in developing regions. PayPal has also recently issued its own stablecoin, PYUSD, on the Ethereum blockchain.
Visa's integration with Solana and the USDC stablecoin highlights the continued adoption of blockchain technology by traditional financial institutions to enhance payment processes and customer experiences.
Research firm Bernstein predicts that the stablecoin market could grow to $2.8 trillion within the next five years as global financial and consumer platforms increasingly utilize tokens on public blockchains for value exchange on their platforms. Stablecoins are a subset of cryptocurrencies with prices pegged to external assets, primarily the U.S. dollar, and are increasingly utilized for remittances and savings in developing regions. PayPal has also recently issued its own stablecoin, PYUSD, on the Ethereum blockchain.
