Visa is bolstering its stablecoin initiative by integrating five additional blockchain networks, adopting a multichain strategy for global transactions. The company's stablecoin settlement pilot program now encompasses nine networks and has achieved an annualized run rate of $7 billion, representing a 50% increase from the previous quarter. This program enables issuers and acquirers to settle transactions using stablecoins rather than traditional banking systems.
The newly supported blockchain networks include Coinbase's Base, Polygon, Canton Network, Circle's Arc, and Stripe-backed Tempo, which join the existing integrations with Ethereum, Solana, Avalanche, and Stellar. As stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, gain traction as a means of cross-border money transfer, Visa is expanding its testing of this model through pilots and regional launches, including the settlement of USDC transactions 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 lengthy waits 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 multi-chain environment and expect their options to reflect 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.'