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- Visa expands U.S. banking access to USDC settlement on Solana
- Stablecoin regulation and infrastructure drive institutional blockchain payment adoption
- Solana gains momentum as major banks explore onchain settlement rails
Visa has expanded its digital payments strategy by enabling stablecoin settlement for U.S. banking institutions. Visa reported that it is now possible to settle back-end payment flows with Circle on the Solana blockchain at selected banks. This evolution is a sign that stablecoins are moving towards mainstream financial infrastructure. The product targets institutional settlement instead of payment products aimed at consumers.
Among the early entrants, the announcement says that Cross River Bank and a16z-backed Lead Bank are involved. Visa announced that additional banking partners in the United States will offer the service through 2026. The implementation is not experimental, but it does indicate an increase in organizational preparedness. Visa observed that banks would be able to settle with stablecoin without modifying the customer payment experiences.
Rubail Birwadker, Global Head of Growth Products and Strategic Partnerships at Visa, says that banks are already developing demand. He claimed that financial institutions are already ready to roll out the stablecoins in live treasury operations. Banks are seeking quick settlements and programmable flows that align with current systems. Visa, therefore, placed the USDC settlement as secure, compliant, and resilient.
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Visa deepens stablecoin infrastructure strategy.
In addition to settlement access, Visa has focused more on infrastructure in relation to stablecoins. Visa reports that the firm introduced a stablecoin bank and corporate advisory practice. The advisory service offers issuance, custody, and on-chain payment strategies. Additionally, Visa launched USDC-based creator payouts and on-chain settlement pilots in several regions.
Visa is also enhancing its partnership with Circle. Circle claims Visa is a design partner to Arc Layer 1 blockchain. Visa intends to run a validator after the network has been introduced. This position enables Visa to be closer to blockchain infrastructure management.
Regulation and Solana adoption shape market momentum
The growth is a result of emerging regulatory clarity within the United States. According to policy developments, the GENIUS Act established the first federal framework for stablecoins. Donald Trump, the current President of the United States, signed the legislation. This has led to the availability of more apparent compliance avenues in regulated institutions.
Market expectations also help explain the rate of adoption. Industry estimates indicate that the stablecoin market is currently valued at approximately $300 billion. It is estimated that it will grow to be worth two trillion by 2028. Payment incumbents are therefore speeding up stablecoin settlement functions.
In the meantime, the institutional interest in the network is evident in Visa’s use of Solana-native USDC. As recently announced, JPMorgan issued a token based on Solana, which is part of a debt deal with Galaxy. State Street and Galaxy have declared their intention to establish a tokenized private liquidity fund. Infrastructure service providers are still growing, with the Firedancer validator of Jump Crypto set to migrate to mainnet. The upgrade is designed to achieve a throughput of approximately 1 million transactions per second.
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