Visa (V) is launching a stablecoin settlement service in the U.S., enabling banks to settle obligations to the credit card giant using Circle’s (CRCL) USDC dollar-pegged digital asset.
The new stablecoin option is meant to give banks near-instant fund movement, seven-day-a-week settlement, and more predictable liquidity while maintaining the credit card experience.
Stablecoins are cryptocurrencies pegged to another asset, typically the U.S. dollar or price of gold. They serve as payment rails and a tool for moving money across institutions and borders.
Tether's USDT is the largest stablecoin, followed by Circle's USDC.
Initial participants in Visa’s new plan are Cross River Bank and Lead Bank, which are settling with the credit card company in USDC over the Solana (SOL) blockchain network.
Visa said that it expects to extend access to its stablecoin settlement service to more U.S. banks throughout 2026. The credit card company is also deepening its ties with Circle.
Management at Visa said they began experimenting with USDC stablecoin settlement in 2021 and have gradually ramped up the offering since 2023.
The stablecoin settlement service is aimed at banks and other financial institutions that are looking to modernize settlement flows and enhance their liquidity, said Visa.
V stock has increased 10% this year to trade at $346.89 U.S. per share.
