Solana News Today: Visa Powers Faster Settlement with USDC on Solana, Pressuring Traditional Payment Networks

Visa has launched a stablecoin settlement service in the United States using Circle's USDC on the Solana blockchain. The move allows U.S. financial institutions to settle transactions in stablecoins, with Cross River Bank and Lead Bank among the first participants according to reports. The service is expected to expand across the country through 2026 as industry sources indicate.

Visa highlighted the growing demand from financial institutions for faster and more efficient settlement options. Rubail Birwadker, Visa's Global Head of Growth Products and Strategic Partnerships, stated that banks are increasingly seeking programmable settlement solutions that integrate with their existing systems according to the company's announcement. The new service offers seven-day settlement windows, surpassing traditional five-business-day timelines according to financial data.

Visa's partnership with Circle extends beyond the U.S. launch. The company is a design partner for Circle's Arc blockchain, a new Layer 1 network in the public testnet phase. Visa plans to use Arc for USDC settlements and operate a validator node once the network is live according to the company's statement. This collaboration reflects Visa's broader strategy to modernize its settlement infrastructure and align with emerging blockchain technologies according to industry analysis.

Implications for Financial Institutions and the Market

The integration of stablecoins into Visa's settlement framework has significant implications for U.S. banks and fintechs. It enables faster funds movement over blockchain networks and improved operational resilience during weekends and holidays according to market analysis. For participating institutions, the service offers enhanced liquidity management and automation, bridging traditional payment systems with blockchain-based infrastructure according to financial reports.

Cross River Bank and Lead Bank have already started using the service, with broader availability expected through 2026 as financial sources report. Industry leaders have praised the initiative, noting that it brings speed and precision to treasury operations according to industry experts.

The move also positions Visa to compete with other major players in the stablecoin space. Mastercard, for example, has already begun allowing merchants to receive stablecoin payments according to business reports. With the stablecoin market projected to grow significantly, traditional payment networks are under pressure to adopt similar technologies to maintain relevance according to market projections.

Broader Market Trends and Regulatory Context

Visa's initiative aligns with a broader shift in the regulatory landscape. The passage of the GENIUS Act, the United States' first federal stablecoin framework, in July 2025, has provided regulatory clarity for stablecoin-based services according to regulatory filings. This act has been a key factor in enabling domestic adoption of stablecoins for fiat-pegged transactions according to industry reports.

Circle, the issuer of USDC, has also been actively expanding its presence in the institutional space. The company recently acquired Interop Labs, the initial developer behind the Axelar Network, to strengthen its interoperability footprint according to company updates. Additionally, Circle's Arc testnet launched in October with participation from major firms like BlackRock and Goldman Sachs according to technical documentation.

Visa's choice of Solana-native USDC underscores the growing institutional interest in the second-largest decentralized finance (DeFi) network. In recent months, major financial institutions like JPMorgan and State Street have also launched tokenized solutions on Solana according to market intelligence. The network's infrastructure is further supported by technological upgrades such as Firedancer, an independent validator client that aims to unlock high transaction throughput according to technical analysis.

Conclusion

Visa's move into stablecoin settlement marks a significant step in the evolution of digital payment infrastructure. By leveraging USDC on Solana, the company is addressing growing demand for faster, more programmable settlement options according to industry reports. As stablecoin adoption continues to rise, traditional payment networks are under increasing pressure to adapt to new technologies according to market analysis. With the U.S. market as a key battleground, the regulatory and technological landscape will likely shape the future of digital payments for years to come according to industry forecasts.