Visa has officially enabled banks and fintech companies to clear payments using USDC on the Solana blockchain, marking a significant step in modernizing the global payment infrastructure.
Payment giant Visa has begun deploying its USDC stablecoin clearing mechanism in the US market, ushering in a new era for on-chain payments that operate 24/7 without impacting the end-user experience. This move marks a significant milestone in the corporation's strategy of integrating blockchain technology into its traditional financial infrastructure.
Cross River Bank and Lead Bank are two pioneering financial institutions participating in this program, having already cleared payments with Visa via the Solana blockchain. Visa plans to expand access to this service to other financial institutions across the United States by 2026, promising to create a widespread blockchain payment network.
The outstanding advantages of blockchain payments
The application of stablecoins to the clearing and settlement process offers significant advantages over traditional methods. Funds flow much faster through the blockchain infrastructure, ensuring continuous clearing and settlement throughout the week, including weekends and holidays. This not only improves operational efficiency but also enhances the sustainability of financial institutions' treasury management.
The new mechanism also supports the automation of liquidation management and seamless integration between traditional payment systems and blockchain infrastructure. According to Visa and its banking partners, these solutions are becoming essential requirements for fintech companies and financial institutions that need high speed, transparency, and accurate cash flow forecasting.
Additionally, Visa is Vai as a design partner for Arc, Circle 's new layer-1 blockchain currently in public testnet phase. This platform is designed for high throughput and robust scalability, aiming to meet Visa's global commerce operational needs in an on-chain environment. Following the mainnet launch, Visa plans to use Arc for USDC clearing and operate its own validation node.
According to published data, as of November 30th, Visa's monthly stablecoin clearing volume exceeded $3.5 billion on an annualized basis. Visa began testing USDC in 2021 and by 2023 had become one of the first major payment networks to deploy stablecoin clearing on a long-term scale.
