Credit card giant Visa is set to launch a significant expansion of its stablecoin settlement program in the United States, allowing issuer and acquirer partners to settle their obligations to the card network using Circle’s USDC, a dollar-pegged stablecoin. This initiative represents the U.S. phase of a program that has already achieved a substantial $3.5 billion annualized run rate as of November 30.
The introduction of USDC settlement is designed to provide banks and fintech companies with nearly instantaneous funds movement, enabling seven-day-a-week settlements and offering more reliable liquidity, especially during weekends and holidays. Importantly, this new option aims to maintain the traditional consumer card experience, ensuring that the transition to digital currency does not disrupt everyday users.
Stablecoins, which are cryptocurrencies pegged to stable assets like fiat currencies or gold, play a crucial role in the current crypto economy. They function as essential payment rails and facilitate money transfers across borders. Among the most notable stablecoins is Tether’s USDT, with Circle’s USDC following closely behind.
Initial participants in Visa’s USDC settlement program include Cross River Bank and Lead Bank, who will be settling transactions with Visa over the Solana blockchain. According to Rubail Birwadker, Visa’s global head of growth products and strategic partnerships, the expansion of stablecoin settlement is a response to demand from banking partners who are not only interested in this development but are also actively preparing to implement it.
Visa plans to broaden access to this service for more U.S. partners through 2026, inviting interested clients to engage with their account teams to explore availability as it grows. The company is also strengthening its collaboration with Circle, acting as a lead design partner for Circle’s Arc blockchain and intending to operate a validator node once the blockchain goes live. This initiative will support USDC settlements through the Arc infrastructure.
Visa’s journey with USDC began in 2021 when it first conducted trials of stablecoin settlements. By 2023, it became one of the pioneering payment networks to officially transact in stablecoins, further broadening its offerings by integrating support for additional blockchains in its pilot program. This approach allows partners flexibility in fulfilling their VisaNet obligations. The recent rollout is particularly aimed at financial institutions, fintech firms, and treasury teams that are eager to modernize their settlement processes, improve liquidity management, and develop programmable money-movement solutions that connect traditional banking systems with blockchain technology.
