Visa Starts Using Stablecoin for Global Settlement

Source: TokocryptoBlog Original Title: Visa Starts Using Stablecoin for Global Settlement Original Link: Visa has officially made stablecoins a core part of the international transaction settlement system. This major step is being 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 targeting an area invisible to consumers: the backend mechanism that determines how fast 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 corridors. The old system still relies on lengthy correspondent banking chains.

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 old network

Visa emphasizes that this step is modernization, not disruption.

Global Trends: Stablecoins Leave the Crypto World

Stablecoins are increasingly becoming institutional liquidity tools outside the crypto ecosystem.

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

If this expansion spreads, stablecoins are likely to enter the mainstream financial system faster than CBDCs.

This Visa step also triggers discussions on new regulations. The Basel Committee reviews the 1,250% risk weight for crypto asset exposures, 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 the old payment infrastructure to blockchain-based settlement is underway.

Potential impacts include:

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

Visa itself does not dismantle its old system. The company instead builds parallel infrastructure capable of handling speeds and reliability that traditional networks cannot meet.