Visa's Strategic Expansion into Stablecoin Settlements and Its Implications for Fintech and Traditional Banking

In November 2025, Visa announced a strategic partnership with Aquanow to expand its stablecoin settlement capabilities across Central and Eastern Europe, the Middle East, and Africa (CEMEA). This collaboration integrates Aquanow's digital asset infrastructure with Visa's global payments network, enabling financial institutions to use approved stablecoins like USDC for faster, more cost-effective cross-border transactions. The initiative builds upon Visa's 2023 pilot with USDC, which now supports a monthly transaction volume of $2.5 billion in annualized run rate. By leveraging stablecoins, Visa aims to modernize the backend of money movement, offering 365-day settlement capabilities that eliminate delays caused by traditional banking systems.

A Pivotal Shift in Global Payments Infrastructure

Visa's partnership with Aquanow represents a pivotal shift in global payments infrastructure, driven by the growing institutional trust in regulated stablecoins and blockchain-based systems. The integration of Aquanow's infrastructure with Visa's technology stack enables issuers and acquirers to settle transactions using approved stablecoins, reducing costs, operational friction, and settlement times. This move aligns with broader industry trends, as stablecoins continue to gain traction in the financial sector, with transaction volumes reaching over $305 billion in 2025.

The partnership's 365-day settlement model enhances liquidity and reduces reliance on traditional systems with multiple intermediaries. For traditional banks and fintechs, this development offers a more resilient and efficient payment environment, particularly in markets with fragmented banking systems and long settlement cycles. As Godfrey Sullivan of Visa noted, the integration is a key step toward reducing reliance on traditional intermediaries and preparing financial institutions for the future of payments.

Regulatory Clarity Fuels Adoption

Regulatory developments have significantly influenced the adoption of stablecoin-based cross-border payments in the CEMEA region. With the introduction of clear legal frameworks such as the U.S. GENIUS Act and Europe's MiCA (Markets in Crypto-Assets) regulations, stablecoins are now recognized as legitimate financial instruments, backed by 1:1 reserves and subject to anti-money laundering controls. This regulatory clarity has encouraged traditional financial institutions and fintechs to explore stablecoins as a more efficient alternative to legacy systems.

According to a report by OpenDue, stablecoin-based payments offer faster settlement times, lower fees, and improved transparency compared to traditional methods like SWIFT and card networks. As banks and other financial entities adapt to this new regulatory environment, stablecoins are expected to play an increasingly prominent role in global cross-border transactions.

Competitive Dynamics and Institutional Adoption

Visa's expansion into stablecoin settlements is reshaping competitive dynamics in the fintech and traditional banking sectors. By enabling 365-day settlements and reducing operational friction, Visa is positioning itself as a leader in modernizing payment infrastructure. This strategy is particularly impactful in regions like Africa, where Visa has partnered with Yellow Card, a pan-African fintech, to test integration opportunities and expand cross-border payment options.

For traditional banks, the shift toward stablecoin settlements presents both challenges and opportunities. While legacy systems may struggle to keep pace with blockchain-based solutions, institutions that adopt stablecoin technology can gain a competitive edge in liquidity management and cross-border efficiency. Fintechs, meanwhile, benefit from reduced barriers to entry and the ability to innovate in real-time payment solutions.

Conclusion

Visa's partnership with Aquanow signals a definitive shift in global payments infrastructure, driven by the convergence of regulatory clarity, technological innovation, and institutional demand for efficiency. By enabling stablecoin settlements across CEMEA, Visa is not only modernizing the backend of money movement but also setting a precedent for how traditional and digital financial systems can coexist. As stablecoin transaction volumes continue to rise, institutions that embrace this transition will likely lead the next phase of global financial innovation.