Visa enables US banks to settle payments using stablecoins
Visa is bringing stablecoins deeper into the U.S. financial system by allowing American banks to settle transactions using digital dollars for the first time.
The payments giant announced that U.S.-based institutions can now settle transactions on Visa’s network using USDC, a dollar-pegged stablecoin issued by Circle Internet Group. The settlement will run on the Solana blockchain, with Cross River Bank and Lead Bank named among the first participants. Visa also confirmed it will support Circle’s upcoming Arc blockchain, for which it serves as a design partner, once the network goes live.
While Visa has experimented with stablecoin settlements in international markets before, this marks its first full-scale rollout within the U.S. banking system. The move follows new federal stablecoin legislation signed in July by President Donald Trump, which clarified the legal framework for fully reserved, fiat-backed digital currencies and opened the door for broader domestic adoption.
“There’s a new wave of demand coming from fintech and crypto firms building entirely new payment use cases,” said Luca Cosentino, head of crypto at Cross River Bank. “For banks like ours, that demand is significant.”
Stablecoins gain traction in card payments
Fintech and crypto companies are increasingly integrating stablecoins into payment cards, allowing users to spend balances while merchants receive payouts in local currency. Cross River Bank is launching Visa’s stablecoin settlement capability in partnership with payments platform Highnote.
Cosentino said the ability to settle card transactions using stablecoins could help banks attract newer, fast-growing clients. Over time, he believes stablecoins will become a foundational payments rail, making adoption “a no-brainer” across the industry.
Stablecoins like USDC are designed to maintain a steady value and are typically backed one-to-one by dollar-denominated assets such as U.S. Treasuries.
Payments giants race to adapt
Visa’s move highlights intensifying competition among major payments networks to adapt to a technology that could reshape how money moves. According to Bloomberg Intelligence analyst Diksha Gera, stablecoins could facilitate more than $50 trillion in annual payment flows by 2030.
Visa’s main rival, Mastercard, announced earlier this year that it would allow merchants to accept stablecoin payments. In October, Fortune reported that Mastercard was in advanced discussions to acquire crypto infrastructure firm Zero Hash.
Traditional financial institutions have become more vocal about stablecoin strategies in 2025, encouraged by a regulatory shift under the Trump administration that has taken a more supportive stance toward digital assets.
“This goes straight to the heart of what Visa does—settling money on our network,” said Rubail Birwadker, Visa’s global head of growth. “With regulatory clarity in place, we can now extend these fully reserved digital dollar settlement flows to U.S. banks.”
Faster settlements, new services
One of stablecoins’ biggest advantages is speed. Traditional card settlements on Visa’s network can take up to three business days, while blockchain-based settlements can occur nearly instantly, 24/7.
Earlier this year, Visa partnered with Stripe’s Bridge to help fintech companies quickly launch stablecoin-linked card programs across multiple countries, beginning in Latin America—regions where demand for stablecoins is often strongest due to volatile local currencies.
As of November 30th, Visa reported annualized stablecoin settlement volumes exceeding $3.5 billion. While that figure is small compared to the $17 trillion processed on Visa’s network last year, it represents a rapidly growing business line.
To cement its role in the evolving payments landscape, Visa recently launched a global stablecoin advisory practice aimed at banks, fintechs, and merchants. The company is also promoting its tokenized asset platform, which allows financial institutions to issue their own fiat-backed digital tokens.
Disclaimer: This article is a rewritten summary. The original reporting was published by Bloomberg and can be found at https://www.bloomberg.com/.
