Visa and Aquanow Deliver Internet-Speed Settlements for Global Payments

Visa Inc. (NYSE: V) has partnered with Aquanow, a digital asset infrastructure provider, to expand stablecoin settlement capabilities across the Central and Eastern Europe, Middle East, and Africa (CEMEA) region, marking a significant step in modernizing cross-border payments. According to the announcement, the collaboration enables financial institutions on Visa's network to settle transactions using approved stablecoins like USDC, reducing operational costs, settlement times, and reliance on traditional correspondent banking systems. The initiative builds on Visa's 2023 pilot program, which demonstrated the viability of stablecoin-based settlements and has since scaled to a $2.5 billion annualized run rate in monthly volume.

The integration of Aquanow's infrastructure with Visa's technology stack enables 365-day settlement, eliminating delays tied to weekends, holidays, or time-zone differences. Godfrey Sullivan, Head of Product and Solutions for CEMEA at Visa, emphasized that the partnership addresses growing institutional demand for faster and more predictable payment solutions. "By harnessing the power of stablecoins and pairing them with our trusted global technology, we are enabling financial institutions in CEMEA to experience faster and simpler settlements," he stated according to the report. The move aligns with broader industry trends, as stablecoins increasingly serve as a bridge between traditional finance and blockchain-based systems, offering transparency and efficiency.

Aquanow's role as a liquidity provider is critical to the partnership. The company processes billions of dollars in monthly crypto transactions and has established regulatory compliance in regions like the UAE, where it operates under Dubai's Virtual Assets Regulatory Authority as per the announcement. Phil Sham, Aquanow's CEO, highlighted the collaboration's potential to redefine digital finance: "Together, Visa and Aquanow are unlocking new ways for institutions to participate in the digital economy, leveraging stablecoin technology to settle with the speed and transparency of the internet" according to the statement.

Visa's foray into stablecoin settlements positions it to compete with peers like Mastercard, which recently launched tools supporting stablecoin transactions, and American Express, which explores blockchain-linked rewards programs. The expansion also aligns with Visa's broader strategy to digitize the "back end" of global payments, potentially boosting margins by reducing liquidity costs and attracting fintechs and neobanks seeking cheaper cross-border solutions.

Regulatory and market challenges remain, however. While stablecoins offer stability compared to volatile cryptocurrencies, their adoption hinges on navigating evolving compliance frameworks and addressing systemic risks. Visa's partnership with Aquanow, which operates in a licensed environment, underscores its cautious approach to balancing innovation with regulatory expectations.

Looking ahead, Visa plans to expand its stablecoin ecosystem by supporting additional tokens across multiple blockchains, as outlined by CEO Ryan McInerney in recent earnings calls. The company's strategic bets reflect a broader industry shift toward blockchain-driven finance, with central banks and institutions increasingly exploring digital currencies as complements to traditional systems.