Visa is augmenting its stablecoin initiative by incorporating five more blockchain networks, embracing a multichain strategy for global transactions. The company announced on Wednesday that its stablecoin settlement pilot program now encompasses nine networks, achieving a $7 billion annualized rate, marking a 50% increase from the previous quarter. This program enables issuers and acquirers to settle transactions using stablecoins, bypassing traditional banking channels.
The newly added blockchain networks include Coinbase's Base, Polygon, Canton Network, Circle's Arc, and Stripe-backed Tempo, in addition to existing integrations with Ethereum, Solana, Avalanche, and Stellar. As stablecoins, or cryptocurrencies pegged to the value of fiat currencies, gain traction in cross-border money transfers, Visa is expanding its testing of this model through pilots and regional rollouts. This includes USDC settlement tied to card programs in over 50 countries. By utilizing blockchain-based dollars, partners can settle transactions in near real-time, eliminating the need for prolonged waiting periods associated with traditional banking systems.
Visa's support for multiple networks aims to provide partners with access to diverse liquidity pools without added complexity. According to Rubail Birwadker, Visa's global head of growth products and strategic partnerships, 'Our partners operate in a multichain environment and expect their options to align with this reality.
By expanding our stablecoin settlement pilot program to more blockchain networks, our partners can select the networks that best suit their needs while relying on Visa to provide a unified settlement layer across all of them.'