Visa Introduces Stablecoin Settlement in the US

Core Insights - Visa Inc. has launched USDC settlement in the U.S., marking a significant step in its stablecoin settlement pilot program aimed at modernizing its settlement layer for commerce [1] - The initiative allows U.S. issuer and acquirer partners to settle transactions using Circle's USDC, a fully reserved, dollar-denominated stablecoin [1] - Initial banking partners include Cross River Bank and Lead Bank, with plans for broader availability in the U.S. by 2026 [1][2] Group 1: USDC Settlement Features - USDC settlement enables faster funds movement over blockchains, with seven-day availability and enhanced operational resilience during weekends and holidays [1] - Visa's monthly stablecoin settlement volume surpassed a $3.5 billion annualized run rate as of November 30, 2023, indicating significant growth since Visa began settling transactions in stablecoins [2] - Visa's U.S. stablecoin settlement framework includes modernized liquidity and treasury management, allowing automated treasury operations for bank participants [4] Group 2: Partnerships and Technological Integration - Visa is collaborating with Circle on Arc, a new Layer 1 blockchain designed to support Visa's global commercial activities on-chain [1] - Early banking partners highlight the benefits of API-driven settlement experiences, with Lead Bank emphasizing the importance of seven-day settlements and clearer liquidity timing for clients [3] - Visa Consulting & Analytics has launched a Stablecoins Advisory Practice to assist financial institutions in navigating the evolving landscape of stablecoin integration [3]