Visa Brings USDC Settlement to U.S. Banks as Stablecoin Volume Tops $3.5B

Visa has officially brought stablecoin settlement to the United States, allowing U.S. financial institutions to settle transactions directly with the payments giant using Circle’s USDC, a move that signals a deeper integration of blockchain infrastructure into the core of traditional payment rails.

In an announcement released Tuesday, Visa said U.S. issuer and acquirer partners can now settle VisaNet obligations in USDC, marking a major expansion of its stablecoin settlement pilot program and its broader effort to modernize the settlement layer underpinning global commerce. The rollout makes Visa one of the first major payment networks to enable stablecoin-based settlement for U.S. institutions at scale.

The initiative builds on Visa’s growing stablecoin activity, which has surpassed a $3.5 billion annualized settlement run rate as of late November. Visa began experimenting with USDC settlement in 2021 and became one of the first global networks to settle transactions in a stablecoin in 2023.

Faster, Always-On Settlement for U.S. Banks

Under the new framework, participating banks can settle with the payments giant seven days a week, including weekends and holidays, instead of relying on traditional five-day banking windows. While the consumer card experience remains unchanged, the back-end settlement process becomes faster, more predictable, and more resilient.

Initial banking participants include Cross River Bank and Lead Bank, both of which have begun settling in USDC over the Solana blockchain. Visa said broader availability across the U.S. market is planned through 2026.

“Visa is expanding stablecoin settlement because our banking partners are not only asking about it — they’re preparing to use it,” said Rubail Birwadker, Visa’s global head of growth products and strategic partnerships. He added that institutions are increasingly seeking programmable, blockchain-based settlement options that can integrate seamlessly with existing treasury operations while maintaining high standards for security and compliance.

Bridging Blockchain and Traditional Payment Rails

Visa described the U.S. launch as part of a broader effort to connect traditional payment infrastructure with blockchain-based systems. The company said stablecoin settlement can help banks modernize liquidity and treasury management, automate reconciliation, and improve capital efficiency by enabling continuous settlement.

The U.S. expansion follows years of pilot programs across Europe, Latin America, Asia-Pacific, and the Middle East and Africa. Earlier this year, Visa also expanded its stablecoin settlement program to support additional blockchains and stablecoins, offering partners greater flexibility in how they manage VisaNet obligations.

Deeper Ties With Circle and Arc Blockchain

As part of its long-term stablecoin strategy, Visa revealed it is also serving as a design partner for Arc, a new Layer 1 blockchain being developed by Circle and currently running in public testnet. Arc is designed specifically to support institutional-scale onchain activity, with a focus on performance and scalability.

Visa plans to use Arc for USDC settlement within its network and intends to operate a validator node once the blockchain goes live. Circle executives framed the collaboration as a milestone for institutional adoption of stablecoins.

“Bringing USDC settlement to the U.S. with Visa is a milestone for internet-native money moving at the speed of software,” said Circle Chief Product and Technology Officer Nikhil Chandhok. He said the integration enables card issuers to modernize treasury operations while preserving the transparency and trust associated with USDC’s fully reserved model.

Early Bank Partners See Strategic Advantages

Lead Bank and Cross River Bank both highlighted the importance of seven-day settlement and interoperability between blockchain and traditional systems.

Jackie Reses, CEO of Lead Bank, said always-on settlement provides clearer liquidity timing and greater precision for fintech clients that increasingly operate outside conventional banking hours. Cross River CEO Gilles Gade emphasized that stablecoins are becoming a standard request from fintech and crypto-native companies seeking integrated financial infrastructure.

“A unified platform that natively supports both stablecoins and traditional payment networks is the foundation for how value will move globally,” Gade said.

Advisory Push Signals Broader Adoption

To support institutions exploring stablecoin adoption, Visa also recently launched a Stablecoins Advisory Practice under its Visa Consulting & Analytics division. 

The initiative is aimed at helping banks and fintechs assess market fit, regulatory considerations, and implementation strategies as stablecoins move closer to mainstream financial plumbing.