Solana Enables Visa to Settle Bank Payments in USDC For the First Time in the US

Visa has opened stablecoin settlement to U.S. financial institutions, allowing banks to settle Visa network obligations in USDC on the Solana blockchain instead of using traditional fiat rails. Cross River Bank and Lead Bank are the first to go live, and broader access is planned through 2026. This is the first time American banks can settle directly with Visa using a stablecoin.

The move shifts part of Visa’s backend settlement process onto blockchain infrastructure while keeping the consumer card experience unchanged. 

What Exactly did Visa Launch for U.S. Banks?

Visa launched a USDC settlement service for U.S. financial institutions that act as issuers and acquirers on the Visa network. Instead of settling balances in U.S. dollars through traditional bank wires, participating institutions can now settle in Circle’s USDC stablecoin using the Solana blockchain.

This service is already live. Cross River Bank and Lead Bank have begun settling transactions with Visa using USDC on Solana. Visa expects to expand access to more U.S. partners through 2026.

A key point is that this is not a pilot in the testing phase. Transactions are already being settled in production between Visa and these banks.

In a traditional setup:

• Card payments clear quickly at the point of sale.
• Actual settlement between banks happens later.
• Settlement often follows a five business day cycle.
• Weekends and holidays slow everything down.

With USDC settlement on Solana:

• Settlement can run seven days a week.
• Funds move even on weekends and holidays.
• Banks get more predictable liquidity timing.

As of November, Visa’s global stablecoin settlement program has reached $3.5 billion in annualized volume. That figure includes activity across Latin America, Europe, Asia-Pacific, and the Middle East and Africa.

Visa first settled transactions in USDC in 2021. In 2023, it became one of the first major payment networks to use stablecoins in live settlement. The U.S. rollout builds on those earlier efforts.

How Does USDC Settlement on Solana Work in Practice?

Visa’s stablecoin settlement uses USDC, a dollar-pegged stablecoin issued by Circle. USDC is backed by cash and short-term U.S. Treasuries and is designed to maintain a one-to-one value with the U.S. dollar.

Solana is the blockchain used for these settlements today. Solana processes transactions quickly and with low fees, which makes it suitable for frequent settlement activity.

Here is how the flow works at a high level:

• A card transaction happens as usual for the consumer.
• Visa calculates settlement obligations between banks.
• Instead of sending dollars through legacy rails, the bank sends USDC.
• USDC moves over Solana to settle the balance.
• Treasury systems record the transaction like any other settlement.

Visa emphasized that standard security and compliance requirements still apply. Banks are not bypassing existing controls. The blockchain rail replaces part of the settlement plumbing, not the compliance framework.

“Visa is expanding stablecoin settlement because our banking partners are not only asking for it – they’re preparing to use it,” Rubail Birwadker, Visa’s global head of growth products and strategic partnerships, stated.

Why did Visa Choose Solana for U.S. Stablecoin Settlement?

Visa has tested stablecoin settlement on multiple blockchains since 2021. Per reports, Solana stands out because of its performance and transaction capacity.

Solana uses a mechanism called Proof of History. It orders transactions in a verifiable sequence before they are finalized. This helps the network process large volumes of activity quickly.

For settlement use cases, banks care about:

• Consistent transaction finality
• Low and predictable fees
• High throughput during peak periods

Solana meets these needs for now. That does not mean Visa is locked to a single chain forever. Visa has already said it wants to give partners flexibility in how they settle obligations, including support for multiple blockchains and stablecoins.

How Does Circle’s Arc Blockchain Fit into Visa’s Plans?

Visa is also deepening its relationship with Circle, the issuer of USDC.

In late October, Circle launched the public testnet for Arc, a new layer-1 blockchain designed for commercial payment activity. Over 100 partners are involved, including Visa, Mastercard, BlackRock, and Goldman Sachs.

Visa is a design partner for Arc. The company said Arc offers the performance and scalability needed to support Visa’s global commercial activity.

Visa plans to:

• Use Arc for USDC settlement
• Operate a validator node on the network
• Help shape the chain’s design for payment use cases

Arc is still in testnet, but Visa’s involvement shows it is planning for long-term blockchain settlement infrastructure.

What is the Stablecoins Advisory Practice at Visa?

Alongside the technical rollout, Visa launched a global Stablecoins Advisory Practice.

This unit sits within Visa Consulting & Analytics. Its job is to help banks, merchants, and fintechs design and manage stablecoin-based products.

The advisory practice focuses on:

• Operational design
• Treasury integration
• Risk management
• Compliance alignment

This signals that Visa expects many institutions to need guidance. Stablecoin settlement touches accounting, liquidity, compliance, and reporting. Those areas matter as much as blockchain performance.

Conclusion

Visa’s launch of USDC settlement for U.S. banks marks a shift in how payment network obligations can be settled. Cross River Bank and Lead Bank are already using USDC on Solana to settle with Visa, with broader access planned through 2026.

The service enables seven day settlement, faster funds movement, and tighter liquidity management while keeping consumer card experiences unchanged. Visa is also preparing for future infrastructure through its role as a design partner on Circle’s Arc blockchain and by operating a validator node when the network goes live.

Resources

1. Solana on X: Announcements (December 2025)

2. Report by Tech In Asia: Visa opens stablecoin payments to US banks via Solana

3. Report by CoinDesk: Visa brings Circle's USDC settlement to U.S. banks following $3.5 billion stablecoin pilot

4. Report by Visa: Visa Launches Stablecoin Settlement in the United States, Marking a Breakthrough for Stablecoin Integration