Visa‘s Journey into the World of Stablecoins and High Performance Blockchains
Visa's Crypto Advancements are set to revolutionize cross-border money movement by expanding stablecoin settlement capabilities
Visa, a global payments leader, is propelling the future of cross-border money movement by embracing stablecoin settlement capabilities and harnessing the power of the Solana blockchain.
This transformative initiative extends to partnering with esteemed merchant acquirers, Worldpay and Nuvei, paving the way for faster, more efficient global transactions.
Unveiling the Vision
Visa's foray into the world of stablecoins commenced with a pioneering pilot program alongside Crypto.com in 2021. This venture positioned Visa as one of the trailblazers in exploring stablecoin settlements from the issuer's perspective. The successful pilot not only streamlined cross-border payments for Crypto.com Visa cardholders in Australia but also eliminated cumbersome currency conversion processes and expensive international wire transfers.
Jeremy Allaire, CEO of Circle, the organization behind USDC, hailed the innovative use cases Visa and its partners are driving with USDC. He emphasized how USDC, designed as a digital dollar, facilitates secure, reliable, and lightning-fast payments, opening new horizons for the future of payments, commerce, and financial applications.
Empowering Merchant Acquirers
In a bold move, Visa is now extending its stablecoin settlement capabilities from issuers to acquirers. This development enables Visa to send funds on-chain to prominent merchant acquirers like Worldpay and Nuvei.
The primary objective is to accelerate settlement times for the wide array of merchants served by these global acquirers, many of whom are deeply immersed in blockchain and cryptocurrency ecosystems.
Embracing Solana
One of the most noteworthy aspects of Visa's expansion is its integration with the Solana blockchain network, celebrated for its remarkable performance and scalability. Solana boasts a rapid 400 millisecond block time, an average throughput of 400 transactions per second (TPS), and the capability to handle over 2,000 TPS during peak demand.
Visa's decision to incorporate Solana positions the company as a pioneer in utilizing this blockchain for live settlement payments between its clients. This move is driven by the industry's growing demand for swifter and more cost-effective stablecoin transactions.
Pioneering the Digital Financial Landscape
Visa's commitment to forging new partnerships and embracing digital currencies underscores its vision for a digital financial landscape. Collaborations with Worldpay and Nuvei signify Visa's dedication to providing flexibility and diversification in funding options, aligning with the evolving needs of global merchants in today's dynamic commerce landscape.
Jim Johnson, President of Worldpay Merchant Solutions, FIS, emphasizes the significance of Visa's USDC settlement capability in enhancing treasury operations and offering a broader range of choices to merchants. Philip Fayer, Chair and CEO of Nuvei, highlights the innovative potential of stablecoins in optimizing cross-border transactions and catalyzing business growth.