Visa Launches Circle’s USDC-Powered Stablecoin Payment Service for US Banks

As Visa continues to expand stablecoin settlements, the company is seeking not only to facilitate transaction settlements but also to position itself as an essential component of the crypto infrastructure industry. 

Furthermore, Visa has to support its Arc blockchain, an infrastructure that aims to allow financial institutions to create their own fiat-backed digital assets. Visa has also pledged to operate a validator node on the Arc network after launch.

Although Visa’s stablecoin settlement platform remains relatively small compared to its overall $17 trillion payment network, with an annualized volume of $3.5 billion as of November 2023, it is a rapidly expanding business. 

Moreover, the stablecoin industry is likely to see further growth and it is a positive start for Visa to position itself early to become a key partner for banks and fintech companies seeking fast and efficient financial payments using stablecoins.

Additionally, Visa’s move into the stablecoin market aligns with other payment giants, such as Mastercard’s similar forays into the market. The competition is rising as more platforms incorporate stablecoin payment solutions.

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