Core Insights - Visa has announced that it will allow U.S. banks and fintech companies to use Circle Internet Group's USDC stablecoin for settlement transactions, integrating blockchain and stablecoins into the traditional financial system amid a supportive regulatory environment [1] - The initial banks participating in this service include Cross River Bank and Lead Bank, which have begun settling transactions with Visa using USDC on the Solana blockchain, with plans to expand to more U.S. institutions by 2026 [1] - Visa is also a design partner for Circle's new blockchain, Arc, which is currently in public testing, and will use Arc for USDC settlements once it goes live [1] - Circle's stock rose nearly 10% following the announcement, reflecting positive market sentiment [1] Group 1 - Visa's global head of growth products and strategic partnerships, Rubail Birwadker, stated that financial institutions are seeking faster, programmable settlement methods that seamlessly integrate with existing operations [2] - The introduction of USDC settlements has led Visa to launch a "stablecoin consulting business" to provide insights and advice on market fit, strategy, and implementation for banks, fintech companies, merchants, and enterprises [2] - Visa and its competitor Mastercard are exploring stablecoin applications to enhance payment efficiency rather than being disrupted by the technology originally intended for decentralized finance [2] Group 2 - Last month, Ripple partnered with Mastercard and Gemini Space Station to pilot stablecoin settlements on the XRPL [3] - In October, reports indicated that Mastercard was in advanced talks to acquire the crypto and stablecoin infrastructure company Zero Hash [3]