Visa Starts Using Stablecoin for Global Settlement

Source: TokocryptoBlog Original Title: Visa Starts Using Stablecoin for Global Settlement Original Link: Visa officially makes stablecoins a core part of the international transaction settlement system. This significant step is implemented in the Central and Eastern Europe, Middle East, and Africa (CEMEA) region, making it one of Visa's most aggressive blockchain implementations to date.

The company uses USDC as a settlement tool through a partnership with the crypto infrastructure company Aquanow.

Focus Behind the Banking System

Instead of targeting retail users or Web3 cards, Visa is focusing on areas that are not visible to consumers: the backend mechanisms that determine how quickly money moves between banks.

With stablecoins, cross-border transactions can be completed at any time, including outside of bank working hours, on weekends, and holidays.

Why is Visa Doing It Now

Banks and payment providers in the CEMEA region are demanding faster settlements, especially for high-volume transaction streams. The old system still relies on a long chain of correspondent banks.

Through USDC, institutions can now:

• transferring international funds without waiting for bank operating hours
• reducing settlement costs related to FX and intermediaries
• completing transactions directly on the blockchain, not on the legacy network

Visa emphasizes that this step is modernization, not disruption.

Global Trends: Stablecoins Leave the Crypto World

Stablecoins are increasingly becoming a tool for institutional liquidity outside the crypto ecosystem.

Deutsche Börse announced plans to integrate the stablecoin EURAU for custody and settlement services. Previously, they collaborated with Circle (EURC) and Société Générale-Forge (EURCV).

If this expansion broadens, stablecoins have a greater chance of entering the mainstream financial system faster than CBDCs.

This Visa step also triggers discussions on new regulations. The Basel Committee is reviewing the 1,250% risk weight for crypto asset exposure, while the Bank of England states that the UK may align with U.S. stablecoin regulations.

Long-Term Impact

The application of stablecoins in CEMEA is a strong signal that the shift from old payment infrastructure to blockchain-based settlement is underway.

Potential impacts include:

• global settlement 24/7 for banks and fintech
• reducing dependence on SWIFT
• hybrid financial system between fiat and blockchain

Visa itself is not dismantling its old system. Instead, the company is building a parallel infrastructure capable of handling speeds and reliability that traditional networks cannot meet.