Visa has unveiled plans to expand its stablecoin settlement capabilities by leveraging the Solana (SOL) blockchain. This strategic move aims to enhance cross-border payment efficiency using Circle's USDC stablecoin on Solana's high-speed network.
Visa's Stablecoin Settlement Expansion
Following a successful pilot with Crypto.com, Visa is rolling out a new system that facilitates USDC transactions across borders via Solana and Ethereum. Key highlights include:
- Millions in USDC Transferred: VisaNet has already processed substantial volumes of USDC between partners on both blockchains.
- Speed and Cost Efficiency: Solana’s infrastructure was selected for its ability to handle high throughput and low-cost transactions, meeting client demand for rapid settlements.
Why Solana?
Cuy Sheffield, Visa’s Head of Crypto, emphasized Solana’s advantages:
"By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we’re helping to improve the speed of cross-border settlement and providing a modern option for our clients."
Solana’s technical edge includes:
- 400-millisecond block times
- 400+ transactions per second (TPS), peaking at 2,000+ TPS during high demand.
- Lower fees compared to traditional networks.
Market Reaction and Community Response
- SOL Price Surge: SOL rallied 6% post-announcement.
- Anatoly Yakovenko’s Take: Solana’s co-founder praised Visa’s decision, calling it a validation of the network’s readiness for global payments.
👉 Explore Solana’s latest developments
FAQs
1. Why did Visa choose Solana for stablecoin settlements?
Visa prioritized Solana for its high throughput, low latency, and cost efficiency, which align with the needs of cross-border payments.
2. Which stablecoin is Visa using?
Visa is using Circle’s USDC for settlements due to its stability and regulatory compliance.
3. How does Solana compare to Ethereum in this use case?
While Ethereum remains a key player, Solana offers faster transactions and lower fees, making it ideal for high-volume settlements.
4. Will other payment providers follow Visa’s lead?
Given Visa’s influence, broader adoption of blockchain settlements by other financial giants is likely.
5. Is USDC the only stablecoin Visa will support?
For now, USDC is the focus, but Visa may integrate other regulated stablecoins in the future.
Conclusion
Visa’s integration of Solana and USDC marks a pivotal step toward blockchain-powered payments. By combining Solana’s speed with stablecoin reliability, Visa is setting a new standard for cross-border settlements.