Why is Visa Expanding USDC Settlement to the US Market?

Visa has launched USDC settlement for its United States issuer and acquirer partners, marking the first time American financial institutions can settle transactions with the payments giant using Circle's dollar-denominated stablecoin.

The expansion brings seven-day settlement capabilities and faster funds movement to US banking partners without requiring changes to consumer card experiences.

Cross River Bank and Lead Bank have become the initial participants, settling with Visa in USDC over the Solana blockchain.

Broader availability across the US is planned throughout 2026.

Building on global foundations

The US launch builds on Visa's established stablecoin settlement pilots operating in several countries across Latin America, the Caribbean, Europe, Asia-Pacific and Central Europe, Middle East and Africa.

By November 30, Visa's monthly stablecoin settlement volume passed a US$3.5bn annualised run rate.

The company became one of the first major networks to settle transactions in stablecoins in 2023.

Visa first experimented with USDC settlement in 2021.

"Visa is expanding stablecoin settlement because our banking partners are not only asking about it - they're preparing to use it," says Rubail Birwadker, Global Head of Growth Products and Strategic Partnerships at Visa.

"Financial institutions are looking for faster, programmable settlement options that integrate seamlessly with their existing treasury operations."

Rubail adds that Visa is delivering "a reliable, bank-ready capability that improves treasury efficiency while maintaining the security, compliance and resiliency standards our network requires."

How have American banks responded? 

Lead Bank, a technology-forward community bank, emphasised the operational benefits of the new settlement option.

"Lead Bank is proud to be among the first US banks to enable USDC settlement with Visa," says Jackie Reses, CEO of Lead Bank.

“This capability brings speed and precision to treasury operations and helps us deliver modern financial services to the communities we serve."

Cross River Bank, which provides embedded financial solutions, highlighted the importance of interoperability between stablecoins and traditional payment networks.

“Fintech and crypto innovators increasingly ask us to bring stablecoins into their existing product suite,” said Gilles Gade, Founder, President and CEO of Cross River.

“A unified platform that natively supports both stablecoins and traditional payment networks is the foundation for how value will move globally. 

"As one of the first US banks to enable USDC settlement with Visa, we’re demonstrating how a tech-forward, deeply integrated banking partner can connect blockchain networks and legacy systems at scale.”

Technical infrastructure and Arc partnership

Visa is serving as a design partner for Arc, a new Layer 1 blockchain developed by Circle that is currently in public testnet.

The payments company plans to utilise Arc for USDC settlement within its network and operate a validator node once Arc goes live.

Arc's purpose-built design offers performance and scalability to support Visa's global commercial activity on blockchain infrastructure.

The new settlement framework features seven-day settlement windows, modernised liquidity and treasury management, and interoperability between traditional payment rails and blockchain-based infrastructure.

Circle and stablecoin market growth

Nikhil Chandhok, Chief Product and Technology Officer at Circle, described the launch as "a milestone for internet native money moving at the speed of software".

Circle has established multiple partnerships to expand USDC adoption, including recent collaborations with OpenPayd and Finastra to deliver integrated fiat and stablecoin infrastructure services to enterprise clients.

Circle's USDC maintains a 21% market share in the stablecoin market and operates across multiple blockchain networks.

The stablecoin received regulatory approval under the European Union's Markets in Crypto-Assets framework in July 2024.

Circle became the first global stablecoin issuer to achieve MiCA compliance.

The broader stablecoin market reached US$161.2bn in market capitalisation as of August 2024, with transaction volumes exceeding US$27tn annually, according to Boston Consulting Group research.

Visa's broader stablecoin strategy

The US settlement launch follows Visa's July announcement adding support for additional blockchains and stablecoins in its pilot programme to provide partners with flexibility in settling VisaNet obligations.

Visa has also made strategic investments in stablecoin infrastructure providers, including BVNK, which processes over US$12bn in annual transactions.

The company announced stablecoin payout capabilities through Visa Direct at Web Summit, enabling businesses to fund payouts in fiat currency while recipients receive USD-backed stablecoins.

Research from Visa's 2025 Creator Economy Report found that 57% of content creators cited instant access as their primary motivation for choosing digital payment methods.

The payments network processed US$16tn in total volume during fiscal year 2024 and reported net revenue of US$10.2bn for the quarter ending June 30, 2025, representing a 14% year-over-year increase.