Visa Pioneers Stablecoin Settlement on Solana with Worldpay and Nuvei

Visa Pioneers Stablecoin Settlement on Solana with Worldpay and Nuvei

Visa is making significant strides in the world of digital currencies, pushing the boundaries of financial innovation. Visa has expanded its stablecoin settlement capabilities to the fast-growing Solana blockchain network. The payments giant also announced new pilot projects with Worldpay and Nuvei for seamless settlement in USDC stablecoin.

Visa Expands Stablecoin Settlement to Solana for USDC Transfers

The payments giant has teamed up with two influential merchant acquirers, Worldpay and Nuvei, to explore the potential of the Circle-issued stablecoin USDC for seamless settlements. Visa's journey into the digital currency sector began in partnerships with Crypto.com and Circle, utilizing USDC and the Ethereum blockchain for real-time settlements between issuers and acquirers. This strategic decision opens up exciting possibilities for streamlined transactions and lower costs.

Visa is empowering its clients with a swifter and more cost-effective way to engage with stablecoins with the support of Solana. Cuy Sheffield, head of crypto at Visa, said:

"By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we're helping to improve the speed of cross-border settlement and providing a modern option for our clients to easily send or receive funds from Visa's treasury."

Visa plans to send USDC funds directly on-chain to Worldpay and Nuvei, who can then seamlessly channel payments in stablecoins to their merchants with this expansion. Traditional cross-border purchases often involve a lengthy fiat currency conversion process, making stablecoin settlements a far more efficient alternative.

Jim Johnson, president of Worldpay Merchant Solutions, highlighted the importance of diversification and flexibility in serving the ever-changing needs of global merchants. He noted:

"Diversifying funding options and increasing flexibility are critical to serving the changing needs of global merchants in today's rapidly evolving commerce landscape."

Visa's move comes as the company strives to lead the charge in digital currency adoption. Solana, known for its impressive capability of handling over 2,000 transactions per second, has emerged as one of the fastest-growing layer one (L1) blockchain networks, despite experiencing a few outages last year.

Visa Modernizes Treasury and Settlement Systems for the Web3 Era 

Visa is gradually modernizing its treasury and settlement systems by embracing crypto-based settlement for the Web3 era. The payments company and its partners believe that stablecoins like USDC have the potential to offer real-time settlement compared to traditional bank transfers.

Visa announced in a press release that Worldpay and Nuvei are global acquirers with diverse merchant bases and are ideally suited for testing these groundbreaking settlement capabilities. Their merchants are increasingly involved with the crypto economy through activities such as participating in NFT marketplaces, utilizing crypto on-ramps, and engaging in blockchain-based games.

Philip Fayer, Chair and CEO of Nuvei, expressed his enthusiasm, stating that "stablecoins like USDC are cutting-edge payments technology that can enable online businesses around the world to accelerate their growth."

Visa's expansion into stablecoin settlement is a significant milestone in the journey toward mainstream digital currency adoption. It promises to revolutionize cross-border transactions, simplify financial processes, and open up new opportunities for businesses and consumers alike.

What is your take on Visa’s expansion and stablecoin settlement? Please share your thoughts and opinions in the comments section below.