Visa Launches USDC Stablecoin Settlement for U.S. Institutions

TLDR

• Visa has launched USDC settlement in the U.S., allowing institutions to settle transactions using Circle’s dollar-backed stablecoin.
• The service enables seven-day, blockchain-based settlements, improving liquidity and treasury operations without affecting consumer card use.
• Cross River Bank and Lead Bank are the first U.S. institutions to settle in USDC over the Solana blockchain.
• Visa is partnering with Circle to develop Arc, a Layer 1 blockchain for high-volume, scalable commercial settlement infrastructure.
• Visa’s stablecoin settlement volume hit a $3.5 billion run rate, with broader U.S. rollout planned through 2026.

Visa has officially introduced USDC stablecoin settlement for U.S. institutions, marking a key development in its digital payment strategy. This initiative enables partner banks and fintechs to settle Visa transactions using Circle’s USDC, a fully reserved, dollar-backed stablecoin. The service leverages blockchain technology to allow faster, seven-day settlement operations with no disruption to consumer card experiences. Initial participants include Cross River Bank and Lead Bank, both of which are now settling transactions with Visa over the Solana blockchain.

USDC Settlement Goes Live in the U.S. With Strong Institutional Backing

Visa has now opened USDC settlement to U.S. issuer and acquirer partners for the first time since launching its global pilot. This development follows years of testing with Circle and a broader goal to modernize the VisaNet settlement layer. According to the company, the service supports seven-day fund movements, offering improved liquidity and treasury efficiency across weekends and holidays. Banks using USDC can access faster, programmable settlement that integrates into existing systems without changing how customers use their cards.

The pilot began in 2021, and by November 2023, Visa’s stablecoin settlement volume reached a $3.5 billion annualized run rate. The company confirmed broader availability of this service in the U.S. through 2026. Both Cross River Bank and Lead Bank have begun settling transactions in USDC over Solana, marking the first time domestic banking institutions have done so. “Lead Bank is proud to be among the first U.S. banks to enable USDC settlement with Visa,” said Jackie Reses, CEO of Lead Bank.

Circle, the issuer of USDC, said this move advances the role of stablecoins in institutional payments. “Bringing USDC settlement to the U.S. with Visa is a milestone for internet native money,” said Nikhil Chandhok, Chief Product and Technology Officer at Circle. Rubail Birwadker, Visa’s Global Head of Growth Products and Strategic Partnerships, emphasized that banks are asking for programmable and secure settlement options. He added that this capability maintains Visa’s compliance and security standards while improving operational resilience. Cross River Bank also underscored the importance of integrating stablecoins with traditional payment systems to support fintech growth.

Visa Collaborates With Circle on Arc Blockchain for Future Settlement

Visa is now working with Circle as a design partner on Arc, a new Layer 1 blockchain built for high-volume commercial activity. Arc is currently in public testnet and is expected to offer performance and scalability for large-scale payment infrastructure. Visa plans to utilize Arc for future USDC settlements and confirmed its intention to operate a validator node when Arc launches.

The company aims to improve its settlement capabilities while maintaining full interoperability with traditional rails. According to Circle, Arc is designed to move money at “the speed of software” with transparency and institutional-grade trust. This builds on Visa’s stablecoin settlement activity across regions, including Europe, LAC, and APAC, before entering the U.S. market.

To support clients through this shift, Blockonomi reported that Visa Consulting & Analytics recently introduced its Stablecoins Advisory Practice. The new service will guide financial institutions in evaluating stablecoin use cases and deployment strategies. The advisory unit aims to help banks integrate stablecoins into treasury operations with minimal friction. As the system scales, Visa continues to support a unified financial network that bridges blockchain and traditional payments.

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