Visa Expands Blockchain Payments in the U.S. with Onshore USDC Settlement

Highlights

• Visa has enabled USDC settlement for U.S. issuers and acquirers as part of its stablecoin settlement program.
• Initial settlements are taking place on the Solana blockchain and in 2026 U.S. availability is planned.
• As of late November, Visa’s stablecoin settlement volumes have surpassed a USD 3.5 billion annualized run rate.

Visa Inc. has launched USDC settlement in the US, extending its stablecoin settlement pilot campaign to acquirer partners AND domestic issuer. The move allows U.S. institutions to settle obligations with Visa using Circle’s USDC, a fully reserved, dollar-denominated stablecoin, while keeping the consumer card experience unchanged.

USDC settlement expands to the U.S.

The introduction of USDC settlement marks the first time Visa’s U.S. issuer and acquirer partners can complete settlement directly in a stablecoin. Through this framework, participating institutions can access blockchain-based settlement while continuing to rely on VisaNet for card transactions. Visa stated that the capability is designed to support faster funds movement and continuous availability, including weekends and holidays.

Issuers settling in USDC can move funds over blockchain infrastructure without altering how consumers pay, or merchants receive payments. The settlement process operates in the background, providing institutions with an additional option alongside traditional fiat-based settlement methods.

Early U.S. Participants and Blockchain Partnerships

Cross River Bank and Lead Bank serve as the first U.S. banking participants in Visa's USDC settlement rollout. These institutions now settle Visa transactions using USDC on the Solana blockchain. Visa expects more U.S. banks and partners to join as the program grows, with wider access scheduled through 2026.

Visa collaborates with Circle as a design partner on Arc. Arc focuses on high transaction throughput and scalability to handle onchain commercial volumes. Visa intends to settle USDC transactions on Arc across its network and run a validator node after full launch.

Modernizing settlement operations

Visa outlined several features of its U.S. stablecoin settlement framework. These include seven-day settlement windows. The framework also supports updated liquidity and treasury management processes, enabling more automated operations for participating institutions.

Interoperability is another focus of the initiative, with the settlement framework designed to connect existing payment rails with blockchain-based infrastructure.

Building on global stablecoin pilots

The U.S. launch builds on Visa’s stablecoin settlement activity in other regions. Visa reported that, as of November 30, its monthly stablecoin settlement volumes had exceeded a USD 3.5 billion annualized run rate. Visa started settling transactions in stablecoins in 2023 and later added support for more stablecoins and blockchains.

In 2021, the company first tested USDC settlement. Circle, USDC's issuer, has noted the role of fully reserved stablecoins in institutional settlement processes. Early banking partners, including Lead Bank, have pointed to the growing importance of continuous settlement availability and clearer liquidity timing for fintech clients operating in always-on payment environments.