Visa stock launches stablecoin settlement program with Circle
Visa (V) announced on Tuesday that it has launched a USDC settlement program, utilizing the dollar-denominated stablecoin issued by Circle Internet Group (CRCL).
Calling it "a major milestone" in its stablecoin settlement pilot program, its USDC settlement will be available to institutions in the United States.
The initial banking participants include Cross River Bank and Lead Bank, both of which have started settling with Visa in USDC over the Solana blockchain. The company said that broader availability of the program is expected in the US throughout 2026.
Visa notes that the benefits of USDC settlement include moving funds faster across blockchains, seven-day availability and "enhanced operational resilience across weekends and holidays."
In addition to the USDC settlement program, Visa is also a design partner of Arc, a new Layer 1 blockchain developed by Circle, which is currently in public testnet. The company said that Arc would support its global commercial activity onchain.
Visa also noted that it plans to utilize Arc for USDC settlement within its network once it goes live and will operate a validator node, which verifies transactions on a blockchain and creates new blocks, while helping to maintain network security and consensus by locking up (or staking) cryptocurrency as a collateral.
“Visa is expanding stablecoin settlement because our banking partners are not only asking about it - they’re preparing to use it,” Rubail Birwadker, global head of growth products and strategic partnerships at Visa, said in a statement. “Financial institutions are looking for faster, programmable settlement options that integrate seamlessly with their existing treasury operations.”
Birwadker added that with its USDC settlement, Visa is giving institutions "a reliable, bank‑ready capability that improves treasury efficiency while maintaining the security, compliance and resiliency standards our network requires.”
Visa noted that it has been offering stablecoin settlement across parts of the globe since 2023 and its monthly stablecoin volume passed a $3.5 billion annualized run rate as of November 30. The company first "experimented" with USDC settlement in 2021.
“Bringing USDC settlement to the US with Visa is a milestone for internet native money moving at the speed of software,” Nikhil Chandhok, chief product and technology officer at Circle, said in a statement. “It helps card-issuing financial institutions modernize treasury and unlock new services while retaining the transparency and trust that USDC is known for.”
Visa announced in July that it was expanding its stablecoin settlement support by adding Global Dollar (USDG) and PayPal USD (PYUSD), both USD-backed stable coins, as well as adding the blockchains Stellar and Avalanche to its ecosystem.
Meanwhile, the Office of the Comptroller of the Currency (OCC) recently gave conditional approval for Circle's national bank charter application. The company's National Trust Bank (NTB), called First National Digital Currency bank, will oversee the management of its USDC Reserve on behalf of Circle's US issuer.
USDC is the world's largest regulated stablecoin and Circle said the establishment of its NTB “represents an important milestone in Circle’s efforts to further strengthen the infrastructure supporting USDC.”
Circle's stock rose nearly 10% on Tuesday. It is up 20.3% for the year.