Visa is bolstering its commitment to stablecoins by expanding its settlement program to include five more blockchain networks, underscoring its dedication to a multifaceted approach to global payments. On Wednesday, the company announced that its stablecoin settlement pilot now encompasses nine networks, boasting a $7 billion annual run rate - a 50% increase from the previous quarter.
This initiative enables issuers and acquirers to utilize stablecoins for transaction settlements, bypassing traditional banking channels. The newly integrated blockchains comprise Coinbase's Base, Polygon, Canton Network, Circle's Arc, and Stripe-backed Tempo, supplementing existing partnerships with Ethereum, Solana, Avalanche, and Stellar.
This development occurs as stablecoins, cryptocurrencies pegged to the value of fiat currencies, are gaining traction as a means of facilitating cross-border transactions. Through pilots and regional deployments, including USDC settlement tied to card programs in over 50 countries, Visa has been exploring this paradigm. By leveraging blockchain-based dollars, partners can settle transactions in near real-time, eliminating the need for prolonged waits associated with conventional banking systems.
Visa's support for multiple networks aims to provide partners with access to diverse liquidity pools without introducing added complexity. According to Rubail Birwadker, Visa's global head of growth products and strategic partnerships, 'Our partners operate in a multichain ecosystem and expect their options to mirror this reality. By expanding our stablecoin settlement pilot to additional blockchains, our partners can select the networks that best align with their requirements, while relying on Visa to deliver a unified settlement layer across all of them.'