US banks can now settle in USDC with faster, seven-day blockchain payments; partnership on Arc blockchain further expands onchain infrastructure. The post Visa US banks can now settle in USDC with faster, seven-day blockchain payments; partnership on Arc blockchain further expands onchain infrastructure. The post Visa

Visa Brings USDC Settlement Onshore, Accelerating Stablecoins in U.S. Payments

  • Visa has launched USDC settlement in the U.S., enabling banks to settle using Circle’s stablecoin on blockchain infrastructure without affecting the consumer card experience.
  • Cross River Bank and Lead Bank are the first participants, with broader U.S. access planned through 2026; settlement volumes have reached US$3.5B (AU$5.39B) annualised.
  • Visa is expanding blockchain infrastructure involvement via Circle’s Arc Layer 1 blockchain, while Circle’s shares rose 8.9% and Visa’s shares fell 0.6% following the announcement.

Visa has introduced USDC settlement for US financial institutions, enabling banks and payment partners to complete back-end settlement using Circle’s dollar-pegged stablecoin within Visa’s network. 

The launch extends Visa’s stablecoin settlement pilot into the US market and allows issuers and acquirers to settle obligations using blockchain infrastructure rather than relying solely on traditional fiat-based processes. Visa stated that the service operates without any change to the consumer card experience while providing continuous settlement availability across weekends and public holidays.

The settlement framework enables participating institutions to move funds over supported blockchains with greater speed and predictability, supporting improved liquidity timing and treasury operations. Cross River Bank and Lead Bank are the first US banks to participate, with settlement activity currently taking place on the Solana blockchain. Visa confirmed that broader access for U.S. partners will be rolled out progressively through 2026.

Related: Visa Pilots USDC Payouts, Bringing Instant Global Payments to Freelancers and Creators

Visa’s Stablecoin Strategy

Visa disclosed that its stablecoin settlement volumes have reached an annualised level exceeding US$3.5 billion (AU$5.28 billion), marking a significant milestone in the company’s onchain settlement strategy. The payments firm has conducted stablecoin settlement pilots internationally for several years, covering regions including Europe, Latin America, Asia-Pacific, and CEMEA. Visa first began experimenting with USDC settlement in 2021 as part of its efforts to modernise payment infrastructure.

Alongside settlement expansion, Visa is increasing its involvement in blockchain infrastructure through its role as a design partner for Circle’s Arc Layer-1 blockchain. Visa has confirmed plans to use Arc for USDC settlement once the network launches and to operate a validator node to support the blockchain’s operation. Arc is positioned as a high-performance blockchain designed to meet the scale and throughput demands of global commercial payments.

The announcement was seen as a significant development for Circle, the issuer of USDC, with the company’s shares rising 8.9% to US$82.16 (AU$123.96) following the news, despite remaining below historical highs and still trading well above its IPO price of US$31 (AU$46.77) in June. 

Visa’s shares fell by around 0.6% on the day, even as the company stated that financial institutions are actively preparing to adopt stablecoin settlement and as it continues rolling out additional initiatives focused on stablecoin infrastructure and onchain payment flows.

Related: Bullish Chatter Meets ETF Demand: XRP Sentiment Surges as Solana Funds Pull In Cash

The post Visa Brings USDC Settlement Onshore, Accelerating Stablecoins in U.S. Payments appeared first on Crypto News Australia.

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