Cash App expands into stablecoins and chooses Solana to process USDC due to its speed, low costs, and readiness for large-scale payments.
Cash App's move with Visa shows the trend of integrating blockchain and stablecoins into the global payment system, making transactions faster, cheaper and easier across borders.
- Cash App will support sending, receiving stablecoins and initially process USDC on Solana for its performance suitable for real-time payments.
- USDC is growing its presence in payments, surpassing USDT in volume in October according to Visa OnChain Analytics.
- Visa launches Visa Direct pilot with stablecoin, signaling a phase of mainstream blockchain integration into payments.
Cash App Chooses Solana to Process USDC for Speed and Cost Advantages
Cash App said it will initially process stablecoin transactions on Solana, not Bitcoin's blockchain, to meet the speed and stability requirements for digital payments.
According to the announcement and confirmation from Solana, the network will power USDC payments on Cash App, cementing Solana ’s growing Vai in mass finance. This choice prioritizes low latency, low fees, and scalability, which are important for an instant payment experience (source: Solana on X, integration confirmation link).
The “payment experience first” approach helps Cash App reduce user friction, especially when sending and receiving stablecoins across borders. It also fits the direction of popularizing blockchain payments, where users are less concerned with technical infrastructure and more about fast, cheap, and stable transactions.
“For the first time, Cash App will soon offer access to stablecoins, allowing customers to send and receive digital USD almost anywhere in seconds.”
– Cash App, Product Press Release, Source: Cash App Press (accessed 11/15/2025)
USDC is preferred for its transparency and compliance orientation
Cash App confirms USDC support, amid the stablecoin's growth in usage and emphasis on reserve transparency.
Data from Visa OnChain Analytics shows that USDC surpassed Tether (USDT) in volume in October, reflecting demand for more transparent, compliance-oriented digital USD options (source: Visa OnChain Analytics). This supports Cash App's decision to prioritize a stablecoin suitable for the mainstream payment environment.
In terms of transparency, Circle maintains a public page on reserves and regularly updates transparency for USDC, emphasizing its compliance and risk governance framework (source: Circle Transparency Hub). Choosing USDC reduces perceived risk for mainstream users and enterprise partners.
Why not USDT?
Cash App's announcement points to USDC as a pre-integrated stablecoin; this fits the trend of favoring transparent reserve options and being tied to clear legal frameworks.
While USDT is popular on exchanges, USDC is gaining momentum in the payments ecosystem thanks to its priority on transparency and partnerships with traditional financial institutions (source: Visa OnChain Analytics; Circle Transparency Hub; Tether Transparency). Prioritizing USDC provides a solid foundation for Cash App to deploy large-scale payments and meet risk control expectations.
New product updates confirm Cash App's digital payments strategy
Cash App announces launch package of 11 product updates and over 150 enhancements, combining flexible banking features, AI-powered navigation, and stronger security mechanisms.
In addition, the app will soon allow sending and receiving stablecoins, supporting multiple Token and multiple networks next year (source: Cash App Press). The “multi-network, multi-stablecoin” approach optimizes costs, speed, and compatibility, creating a unified user experience even when the underlying infrastructure is different.
BTC payments and receiving options bridge traditional finance with crypto
Customers will soon be able to pay in BTC at accepting locations, while Square merchants can choose to receive funds in USD or BTC.
This model creates a seamless bridge between traditional payment systems and cryptocurrencies: buyers pay in the most convenient way, sellers have the flexibility to receive the currency that suits their accounting, risk prevention. This is a practical step for e-commerce and retail to gradually accept digital assets without changing core accounting processes (source: Cash App Press).
Visa and Cash App's moves reinforce the trend toward Borderless payments
In parallel, Visa is testing a Visa Direct program that allows businesses to pay fiat funds directly into stablecoin wallets.
The combination of a large user base (Cash App) and a global payment network (Visa) shows that major institutions are no longer in the experimental stage. They are integrating blockchain and stablecoins into clear use cases: cross-border payments, e-commerce, the creator economy, and near-real-time refunds (source: Visa; Visa OnChain Analytics).
Visa Direct pilot expands stablecoin payment scenarios
The above experiment allows fiat money to flow out to stablecoins, which then go through self-custody wallets or custodial infrastructure as needed.
This approach reduces intermediary costs, shortens payment times, and increases financial inclusion for those lacking traditional banking services. When KYC/AML processes are properly implemented, the model can be widely scaled while still meeting compliance requirements (source: Visa).
Short Comparison Table: USDC and USDT from a Payment Perspective
Differences in issuance, transparency, and partner ecosystem directly impact readiness for mass payments.
| Criteria | USDC | USDT |
|---|---|---|
| Issuer | Circle | Tether |
| Reserve transparency | Regular transparency updates, emphasizing compliance (source: Circle Transparency Hub) | Reserve and Attestation Disclosure (Source: Tether Transparency) |
| Ecosystem | Focus on integrating with payment partners, businesses | Widely popular in cryptocurrency exchanges and retail markets |
| Directions for use | Aligned with the goal of compliant, transparent payments | Strong in trading, switching between floors |
Reference source: Circle Transparency Hub; Tether Transparency; Visa OnChain Analytics.
Market Impact: Block Stock and Bitcoin Price Adjust at the Time of Announcement
The product expansion move coincided with Block, Inc. closing at $62.30, down 5.28% according to Yahoo Finance.
Meanwhile, Bitcoin is trading at $95,428.20, down 7.55% in 24 hours according to CoinMarketCap data. Despite short-term volatility, the trend of integrating stablecoins into payments by large organizations is often structural and can support real-world usage in the long term (source: Yahoo Finance; CoinMarketCap).
Frequently Asked Questions
Why did Cash App choose Solana over the Bitcoin network for stablecoins?
Due to its speed, cost, and scalability advantages for real-time payments; Solana confirms it will “power” USDC payments on Cash App (source: Solana on X).
What makes USDC stand out from USDT in payments?
USDC emphasizes transparency and compliance, having surpassed USDT in October volume according to Visa OnChain Analytics; more in line with the requirements of payment partners.
Which stablecoins and networks will Cash App support?
Cash App says it will support multiple Token and multiple networks next year; USDC on Solana is a priority for now (source: Cash App Press).
Can I pay with BTC via Cash App?
Users will soon be able to pay with BTC at accepting units; Square sellers can choose to receive USD or BTC depending on their needs (source: Cash App Press).
What does the Visa Direct pilot have to do with stablecoins?
Visa is testing a way for businesses to pay from fiat into stablecoin wallets, expanding the scope for fast, cross-border payments (source: Visa).
