Visa allows US banks to settle payments using stablecoin
The payments giant announced that American banks can now settle payments using USDC on the Solana network. Cross River Bank and Lead Bank became the first American institutions to start using this new settlement method. Traditionally, banks can only settle payments during business hours on weekdays, which takes several days to complete. With Visa’s new system, banks can settle payments seven days a week including weekends and holidays. This means money moves faster between institutions and becomes available to use much quicker than before. Visa reported the programme reached over 3.5 billion dollars in annual settlement volume by November 2025. More American banks will gain access to this service throughout 2026 as Visa expands the programme gradually. The announcement represents the first full deployment of Visa’s stablecoin settlement within the United States banking system.
Banks gain faster money movement and improved treasury management
The new settlement system allows banks to manage their money and operations more efficiently than traditional methods. Banks hold reserves of money to handle daily transactions, and faster settlement means they can use this money more effectively. Instead of waiting days for money to move between institutions, settlements happen within hours on the blockchain. Rubail Birwadker, Visa’s executive leading the programme, said banks want faster and programmable settlement options for their operations. The service maintains the same security, compliance and network standards that Visa’s traditional banking network requires. Banks do not need to change how consumers use their cards, so customers notice no difference when paying.
The blockchain settlement happens behind the scenes between banks whilst shoppers continue using cards normally at shops. Visa first piloted USDC settlement in 2021 and became one of the first global payment networks using stablecoins in 2023. Since then, Visa expanded the programme across Latin America, Europe, Asia Pacific and other regions globally. The United States launch builds on these international pilots that proved the technology works reliably and safely. Circle’s stock price rose over ten percent following Visa’s announcement as investors recognised increased business opportunities ahead.
Circle receives regulatory approval whilst Visa plans blockchain expansion
Circle, which creates USDC stablecoin, received conditional approval from American banking regulators on 12th December 2025. The Office of the Comptroller of the Currency granted Circle permission to establish First National Digital Currency Bank. This approval allows Circle to manage USDC reserves through a properly regulated bank once fully authorised. The regulatory approval complies with the GENIUS Act passed by American lawmakers in July 2025 for digital currencies. Visa announced it will serve as a design partner for Arc, a new blockchain network Circle is currently building. Once Arc launches, Visa plans to use this network for USDC settlement and operate a validator node. A validator node is essentially a computer that helps verify transactions on the blockchain network are legitimate. Arc is specifically designed to handle the performance and scale needed for Visa’s massive global commercial activity.
Nikhil Chandhok, Circle’s Chief Technology Officer, said the integration helps financial institutions modernise their treasury workflows and operations. Programmable settlement reduces friction and manual work across payment operations for banks and financial companies. Bloomberg Intelligence estimates stablecoins could process more than 50 trillion dollars in annual payments by 2030 globally. This represents a massive expansion from the current 3.5 billion dollar annual rate Visa reported in November. The development follows relaxed cryptocurrency regulations under President Trump’s second administration beginning in January 2025.
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