Visa Brings USDC Stablecoin Settlement to United States

Visa has launched USDC settlement for U.S. financial institutions, allowing issuer and acquirer partners to settle transactions in Circle's dollar-pegged stablecoin rather than traditional fiat currency.

The payment network announced Tuesday that Cross River Bank and Lead Bank have begun settling with Visa using USDC over the Solana blockchain, with broader U.S. availability planned throughout 2026. The expansion marks the first time American institutions can settle Visa network obligations in stablecoins.

The expansion builds on Visa's stablecoin experimentation dating to 2021. In July, the company added support for multiple blockchains and stablecoins in its settlement pilot, giving partners flexibility in how they meet network obligations.

Visa said its global stablecoin settlement program has reached $3.5 billion in annualized volume as of November, representing significant growth since the company became one of the first major payment networks to settle transactions in stablecoins in 2023. The company has operated pilots across Latin America, Europe, Asia-Pacific, and Central Europe, Middle East and Africa.

The U.S. implementation offers participating banks seven-day settlement windows instead of the traditional five-business-day cycle, enabling faster funds movement across weekends and holidays.

Rubail Birwadker, global head of growth products and strategic partnerships at Visa, said financial institutions are seeking programmable settlement options that integrate with existing treasury systems.

"Financial institutions are looking for faster, programmable settlement options that integrate seamlessly with their existing treasury operations," Birwadker stated in the announcement. The capability maintains standard security and compliance requirements while improving treasury efficiency, according to Visa.

Visa also announced it has become a design partner for Arc, a new Layer 1 blockchain being developed by Circle currently in public testnet. The company plans to use Arc for USDC settlement and operate a validator node once the network launches. Arc is designed to offer performance and scalability tailored for commercial payment activity on-chain.

Nikhil Chandhok, chief product and technology officer at Circle, described bringing USDC settlement to the U.S. with Visa as a milestone for internet-native money. He said the integration helps card-issuing institutions modernize treasury operations while maintaining USDC's transparency standards.

Jackie Reses, CEO of Lead Bank, said seven-day settlements and clearer liquidity timing are increasingly important for the community bank's fintech clients. Gilles Gade, founder and CEO of Cross River Bank, emphasized demand from fintech and crypto innovators to incorporate stablecoins into existing product offerings.

Cross River, which provides embedded financial solutions, characterized unified support for both stablecoins and traditional payment networks as foundational infrastructure for global value movement.

Visa Consulting & Analytics recently launched a Stablecoins Advisory Practice to provide strategic guidance on implementation for financial institutions navigating the emerging settlement option. The company stated participating banks experience no change to consumer card experiences despite backend settlement occurring on blockchain rails.