Visa Taps Aquanow to Scale Stablecoin Settlements Across CEMEA

Core Insights - Visa Inc. has partnered with Aquanow to enhance its stablecoin-based settlement infrastructure in the CEMEA region, allowing transactions to be settled using approved stablecoins like USDC [1][4] - The partnership aims to streamline cross-border settlements, reducing time, cost, and operational friction associated with traditional banking systems [2][4] - The adoption of stablecoins is expected to modernize Visa's transaction processes, with monthly settlement volumes indicating over $2.5 billion in annualized activity [3][4] Visa's Strategic Moves - The integration of Aquanow's digital-asset infrastructure into Visa's technology stack will facilitate quicker fund settlements, potentially operating around the clock [2][4] - This initiative is anticipated to improve Visa's margins over time by lowering operational and liquidity costs, attracting new clients such as banks and fintechs [4] - As stablecoin usage increases, Visa's position as a global settlement hub is expected to strengthen, leading to higher transaction volumes and recurring fees [4] Competitive Landscape - Competitors like Mastercard and American Express are also advancing in the stablecoin space, with Mastercard launching tools for stablecoin transactions and American Express exploring blockchain partnerships [5][6] Financial Performance and Estimates - Visa's shares have increased by 5.6% year to date, outperforming the broader industry but lagging behind the S&P 500 Index [7] - The forward price-to-earnings ratio for Visa is 25.52X, higher than the industry average of 20.32X, indicating a premium valuation [10] - The Zacks Consensus Estimate projects an 11.7% year-over-year earnings growth for fiscal 2026, followed by 13.3% growth in the subsequent year [12]