Visa Brings USDC Stablecoin Settlement to U.S. Banks

Visa has expanded its stablecoin settlement program to the United States, enabling financial institutions to use Circle’s USDC stablecoin for backend settlement obligations. The move builds on Visa’s earlier international pilot programs and signals a broader shift toward blockchain-powered treasury and liquidity operations within the traditional banking sector. By extending the initiative to the US market, Visa is positioning stablecoins as a practical settlement tool rather than an experimental technology.

Under the new framework, US-based banks can settle transactions with Visa using USDC instead of conventional fiat currencies. These settlements are processed on the Solana blockchain, which provides high throughput and near-instant transaction finality. As a result, participating institutions gain the ability to complete settlements continuously, including during weekends and public holidays, when traditional banking rails are typically inactive.

Early Bank Participation and Wider Rollout Plans

Initial participants in the US rollout include Cross River Bank and Lead Bank. Both institutions have already begun settling obligations with Visa using USDC, demonstrating early adoption of the system in a live production environment. Visa has indicated that the service will be expanded to additional US financial institutions over the coming year as demand increases and operational familiarity grows.

The company has explained that stablecoin-based settlement offers several operational advantages for banks. These include faster movement of funds through always-on settlement windows, improved liquidity management during non-banking days, and a significant reduction in settlement times from multiple days to near real-time. Visa has also emphasized that the use of USDC does not compromise security or compliance, as transactions continue to operate within the established standards of the VisaNet network.

Long-Term Collaboration With Circle

Visa’s expansion of USDC settlement reflects a deepening relationship with Circle, the issuer of the stablecoin. The two companies have been working together since 2021, when Visa launched its first stablecoin settlement pilots outside the United States. The latest development represents a transition from experimentation to broader deployment within regulated financial systems.

As part of this collaboration, Visa has also become a design partner for Circle’s upcoming Arc blockchain. Arc is a Layer 1 network designed specifically for high-speed, on-chain financial operations. Visa has signaled plans to use Arc for future USDC settlements and has stated its intention to operate its own validator node once the network becomes fully operational. This step would further embed Visa within the blockchain infrastructure supporting institutional payments.

Regulatory Clarity and Market Momentum

Visa’s announcement comes amid increasing regulatory clarity for stablecoins in the United States. In July, the GENIUS Act was signed into law, establishing the country’s first federal framework for stablecoin issuance and oversight. This development has encouraged financial institutions to explore compliant digital dollar infrastructure with greater confidence.

The broader stablecoin market, currently valued at approximately $300 billion, is projected to grow to $2 trillion by 2028. Against this backdrop, major financial players are accelerating efforts to integrate blockchain technology into payment and settlement systems. Circle has continued to expand its ecosystem by launching Arc in testnet with participation from firms such as Visa, BlackRock, and Anthropic, as well as acquiring Interop Labs to strengthen interoperability through Axelar-based technology.

Solana’s Growing Role in Institutional Finance

Visa’s choice to use Solana-native USDC highlights increasing institutional trust in the blockchain. Solana has recently been used in several high-profile financial initiatives, including a tokenized debt transaction involving JPMorgan and Galaxy, and a tokenized fund developed by State Street in partnership with Galaxy. In addition, the launch of the Firedancer validator client by Jump Crypto is expected to significantly increase Solana’s throughput, potentially reaching up to one million transactions per second.

These advancements are contributing to Solana’s positioning as a mature infrastructure layer for enterprise-grade financial operations. By leveraging Solana for stablecoin settlement, Visa is reinforcing the blockchain’s role in the future of regulated, high-speed digital payments and liquidity management.