Visa’s Big Crypto Pivot: Stablecoin Settlements Go Live for U.S. Banks on Solana
In a milestone moment for the payments industry, Visa has opened its U.S. settlement network to stablecoin transactions, enabling banks and financial partners to settle obligations using Circle’s USDC stablecoin on the Solana blockchain. This is the first time U.S. banks can use a dollar-pegged digital token for backend settlement — a move that could reshape how money moves behind the scenes in traditional finance. (Visa)
Rewriting Settlement Railroads
Under the new framework Visa announced on December 16, institutions such as Cross River Bank and Lead Bank have already begun settling transactions with Visa using USDC — a fully reserved stablecoin pegged 1:1 to the U.S. dollar — over the high-throughput Solana blockchain. Broader access for more banks and fintechs is expected to expand throughout 2026. (Visa)
What makes this significant isn’t how consumers swipe their cards — that experience stays the same — but how settlement happens behind the scenes:
- Seven-day settlement windows: Banking partners can settle funds any day of the week, including weekends and holidays. (Visa)
- Near-instant movement of funds: Using a blockchain network like Solana enables faster liquidity timing versus traditional bank wires. (CoinNews)
- Improved treasury operations: Banks could automate liquidity management and settlement reconciliation in ways not possible with legacy rails. (Visa)
Visa’s push follows years of experimentation — earlier pilots in several global regions culminated in a reported $3.5 billion annualized stablecoin settlement run-rate as of November 2025. (Visa)
Why It Matters
This launch is more than a technical upgrade — it signals that blockchain infrastructure is moving from fringe experiments toward enterprise use. By bridging traditional payment rails with programmable digital money, Visa is catering to financial institutions demanding:
- Faster and more predictable settlement timing. (m.ph.investing.com)
- Greater operational resilience during holidays and weekends. (Visa)
- Integration between legacy systems and blockchain-enabled liquidity operations. (XT)
Visa is also strengthening ties with Circle beyond the immediate launch: it’s a design partner on Circle’s new Arc Layer-1 blockchain, where it plans to operate a validator node once Arc exits testnet — underscoring how crypto infrastructure could intertwine with traditional networks in the coming years. (Visa)
Industry Implications
For the broader market, this development may accelerate stablecoin adoption among banks and fintechs seeking real-time settlement solutions — which could, over time, challenge longstanding interbank settlement conventions. Some analysts argue this marks a shift toward a future where programmable money and tokenized settlement rails sit alongside legacy systems. (Reddit)
Glossary
Stablecoin A cryptocurrency designed to maintain a stable value, usually pegged to a fiat currency like the U.S. dollar.
USDC (USD Coin) A dollar-pegged stablecoin issued by Circle and fully backed by reserves.
Solana A high-performance blockchain known for fast transaction speeds and low fees.
Settlement The process where financial institutions finalize and exchange funds after a transaction is authorized.
Blockchain A decentralized digital ledger that records transactions across a network of computers in a secure, transparent, and immutable way.
Source Link: https://www.techinasia.com/news/visa-opens-stablecoin-payments-to-us-banks-via-solana
