Visa's Blockchain Push Modernizes Global Payment Infrastructure

Visa Inc. has expanded its stablecoin settlement capabilities across Central and Eastern Europe, the Middle East, and Africa (CEMEA) through a partnership with Aquanow, a digital assets platform, marking a significant step in integrating blockchain-based solutions into traditional financial infrastructure. The collaboration enables issuers and acquirers on Visa's network to settle transactions using approved stablecoins such as USDC, reducing operational costs, friction, and settlement times compared to legacy systems. This move aligns with growing demand for faster, more efficient cross-border payments, particularly in regions where traditional banking systems face limitations in speed and accessibility.

The partnership builds on Visa's 2023 pilot program, which allowed clients to settle obligations in stablecoins. Since then, the initiative has scaled to a $2.5 billion annualized run rate in monthly volume, demonstrating the potential of stablecoins to digitize the backend of global money movement. Godfrey Sullivan, Head of Product and Solutions for CEMEA at Visa, emphasized that the integration with Aquanow's infrastructure modernizes "the back-end rails of payments," reducing reliance on intermediaries and preparing institutions for the future of digital finance. By enabling 365-day settlement, the system addresses longstanding issues such as weekend and holiday delays inherent in traditional banking cycles.

Aquanow, which processes billions in monthly crypto transactions, serves as a critical infrastructure partner for the rollout. The company's expertise in liquidity and institutional-grade services positions it to support Visa's ambitions in the digital asset space. Phil Sham, Aquanow's CEO, highlighted the partnership's role in unlocking new opportunities for institutions to leverage stablecoin technology, enabling "the speed and transparency of the internet" in financial settlements. This collaboration also reflects Aquanow's strategic expansion in the CEMEA region, where it has previously partnered with entities like Standard Chartered-backed Zodia Custody to bolster its footprint.

The shift toward stablecoin-based settlements underscores a broader trend in the financial sector, where institutions increasingly adopt blockchain solutions to streamline operations. Competitors such as Mastercard and American Express are also advancing their stablecoin strategies, with Mastercard launching tools for USDG transactions and AmEx exploring crypto-linked rewards programs. However, Visa's early adoption and rapid scaling of stablecoin settlements position it as a leader in this transition. The company's ability to integrate digital assets into its global network could attract neobanks, fintechs, and traditional banks seeking cost-effective cross-border solutions.

While the benefits of stablecoins-such as lower fees and near-instant settlements-are clear, challenges remain, including regulatory scrutiny and market volatility. Yet, as institutions like Deutsche Börse explore stablecoin integration for euro-pegged tokens, the technology's role in institutional finance appears poised for further growth. For Visa, the partnership with Aquanow not only enhances its competitive edge but also reinforces its vision of a globally connected payments ecosystem.