Visa Enables USDC Settlement, Reshaping Card Payment Infrastructure

• Visa now allows US card issuers to settle directly in USDC across the United States.
• Banks gain seven day settlement without changing how consumers use cards.
• Stablecoin settlement moves closer to everyday commerce.

Visa has taken a clear step toward changing how money moves inside the card system. The company confirmed that U.S.-based issuers and acquirers can now settle obligations in USDC, a dollar-backed stablecoin issued by Circle.

This marks the first time this option is available at scale in the United States. Until now, stablecoin settlement inside Visa’s network has been limited to pilot programs outside the country.

The update keeps the card experience unchanged for consumers while altering how funds move behind the scenes. 

Banks and fintech firms can now complete settlements faster, even on weekends and holidays, using blockchain rails instead of waiting for traditional banking windows.

Early participation shows how the system works in practice. Cross River Bank and Lead Bank have begun settling with Visa in USDC using the Solana blockchain.

This setup allows funds to move continuously rather than stopping after Friday. Visa plans to expand access across the United States through 2026.

The company views this as a core upgrade to its settlement layer. Stablecoins are treated as a practical tool for treasury operations, designed to fit within existing compliance standards.

Also Read: FSC and Bank of Korea Conflict Over Stablecoin Authority in New Digital Asset Plan

Visa Bridges Legacy Payments With Blockchain Interoperability

The biggest difference is in timing. The normal timing involved in card settlements is about five business days. USDC settlements happen every day and every week.

This is very beneficial in managing liquidity and limiting idle funds. The Treasury operations are made simpler due to the rapid finality of blockchain transactions.

Interoperability is essential. The Visa framework connects existing payment infrastructure with blockchain technology and thus allows the existing bank operations to continue as they are.

Visa is collaborating with Circle on things beyond simply settling transactions. Visa is also collaborating on the design of Arc, a Layer 1 blockchain being developed by Circle that is currently on a public testnet.

Arc has been designed for a high volume of commercial activity and international payments. Visa also plans to use Arc for USDC settlements in the future and will be running a validator node on the chain when it goes live.

Stablecoin Volumes Show Steady Growth

Visa has been experimenting with stablecoins for a few years now in Latin America, Europe, Asia Pacific, and other geographies. Since experimenting with USDC settlements back in 2021, Visa has expanded its support for blockchains and stablecoins. Indeed, as of November 30, Visa reached an annual run rate for stablecoin settlements of $3.5 billion a month.

This development brings USDC even more within financial systems. Fully reserve stablecoins are being increasingly used as a means of settlement. Banks participating in this process claim it is easier to see when liquidity will flow, and reconciliation is quicker.

Also Read: Visa Expands Stablecoin Settlement With Aquanow