Visa Pilots USDC Settlement Payments via Solana Blockchain

Visa’s Initiative to Pilot USDC Settlement Payments

Visa recently announced its initiative to pilot USDC settlement payments via the Solana blockchain.

In a press release, Visa claimed that it will allow settlement of USDC payments through the Solana blockchain on September 5. The company will facilitate these USDC-denominated transactions for commercial banks Worldpay and Nuvei, who can then process payments to their merchants in the same digital way currency.

Visa’s role in the financial ecosystem is enormous, with daily operations involving the clearing, settlement and transfer of billions of dollars.

Coy Sheffield, Visa’s Head of Cryptocurrency, explained that the company’s global network navigates across about 25 currencies and collaborates with nearly 15,000 financial institutions. One of Visa’s important operational tasks is to ensure that transactions are conducted smoothly, especially in the preferred and correct currency.

Visa’s Previous Cryptocurrency Endeavors

The USDC merger is not Visa’s first foray into the cryptocurrency space. The company has started beta tests with USD Coin in its treasury operations in 2021 in collaboration with The goal was to explore how cryptocurrencies can simplify and speed up settlement processes, especially for “original cryptocurrency issuers,” reducing the bureaucratic challenges of international wire transfers and multiple bank accounts.

Blockchain for Settlements

However, the adoption of blockchain for settlements is still in the testing phase. It is part of an experiment to see how blockchain technology can fit into Visa’s existing massive financial network.

By using its Circle account to facilitate settlement payments on the Solana (SOL) blockchain, Visa aims to speed up the normally time-consuming settlement process for Worldpay and Nuvei.

However, it is important to note that although this system can offer faster and potentially more cost-effective transactions, blockchain technology has its own challenges and weaknesses, including security risks and scalability issues.

Sheffield mentioned that Worldpay and Nuvei cater to a variety of global merchants, including those active in the blockchain and cryptocurrency space. This raises questions about how traditional and digital finance can increasingly overlap or complement but adds another layer of complexity to regulatory and compliance frameworks.

Visa’s Interest in Cryptocurrency Integration

Visa’s exploration of cryptocurrency integration came after the company began looking for cryptocurrency developers to help advance its efforts in adopting blockchain technology and stablecoins. While this indicates Visa’s interest in adapting to new financial technologies, a company spokesperson made it clear that Visa’s approach will remain consistent, even if setbacks occur within the volatile cryptocurrency industry.

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Irene Diaz is a celebrity news reporter who started her career as a TV News Reporter. She then progressed into fashion & beauty reporting and eventually jumped from TV to the web, where she worked as a Senior Editor at 24PalNews. Irene believes that if she can, so can you. She’s a firm believer that anything is possible. Her motto is, “It’s all about believing.”

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