By adding the Solana blockchain network to its stablecoin settlement capabilities, Visa is increasing the use of digital currencies. Additionally, the industry leader in payments revealed brand-new pilot projects with merchant acquiring companies Worldpay and Nuvei to investigate speeding settlement in the Circle-issued stablecoin USDC.
Visa partners with Worldpay and Nuvei to facilitate streamlined USDC transfers, and extends stablecoin settlement to Solana.
The financial institution's most recent action expands on its earlier collaborations with Circle and Crypto.com, which used the Ethereum blockchain and USDC for close to real-time settlement between issuers and acquirers. Visa wants to make stablecoin-using customers' transactions easier and less expensive by introducing support for Solana.
According to Cuy Sheffield, head of Crypto at Visa, "by leveraging stablecoins like USDC and international blockchain networks like Solana and Ethereum, we're helping to improve the speed of cross-border settlement and giving our clients a modern option to easily send or receive funds from Visa's treasury."
Visa intends to deliver USDC funds via the extension to Worldpay and Nuvei so that they can subsequently make stablecoin payments to their merchants. Settlement for cross-border purchases typically entails a protracted fiat currency conversion procedure. Settlement with stablecoins offers a quicker option.
According to Jim Johnson, president of Worldpay Merchant Solutions, "diversifying funding options and increasing flexibility is critical to serving the changing needs of global merchants in today's rapidly evolving commerce landscape."
The action is being taken as Visa seeks to establish itself as a leader in the use of digital currencies. One of the layer one blockchain networks with the quickest growth has been Solana, which claims to be able to process more than 2,000 transactions per second. The layer one (L1) network, however, experienced many disruptions last year.
Visa claims that by adopting crypto-based settlement, it is gradually updating its treasury and settlement systems in preparation for the Web3 era. In contrast to conventional bank transfers, the payments organization and its partners believe stablecoins like USDC provide the possibility of nearly instantaneous settlement.
Worldpay and Nuvei are appropriate partners for evaluating new settlement capabilities, according to Visa, as they are both international acquirers with a variety of merchant bases. According to the news release, its merchants are progressively engaging with the crypto economy via NFT markets, crypto on-ramps, and blockchain-based games.
According to Nuvei's chairman and CEO Philip Fayer, "stablecoins like USDC are cutting-edge payments technology that can enable online businesses around the world to accelerate their growth."
What do you think about the notions of stablecoin settlement and Visa's expansion? Post your ideas and viewpoints on this topic in the comments area below.