In a bold, futuristic move, Visa, the global behemoth of the payment sector, has intruded into the sphere of stablecoin payments with an announcement of a partnership with Solana blockchain. This news has stirred the sector, revealing lucrative potentials of this inititive.
The integration exploits stablecoins like USDC and eminent blockchain networks like Solana and Ethereum, aiming to enhance the speed of cross-border settlement, concurrently offering a novel, easy-to-use option to receive/send funds from Visa’s treasury.
However, beneath the surface of near-instant payment authorizations which customers hitherto experience, the complexities of Visa’s settlements have always been camouflaged. Visa’s treasury acts as the crucial engine facilitating fund movements from the consumer’s bank (the issuer) to the merchant’s bank (the acquirer).
The recent strategic maneuver equips Visa to shift USDC-denominated payouts to Worldpay and Nuvei through its Circle Account. These payments in USDC can then be transferred by merchant banks to their end-users.
In a triumphant partnership with Crypto.com, Visa demonstrated its commitment to investigate the potential of blockchain technologies for treasury solutions. Previously, cross-border transactions for Crypto.com involved a time-consuming currency conversion, with transactions taking several days.
However, the arrival of USDC and the blockchain system simplified the process. Crypto.com was thus able to transfer USDC across borders using Ethereum to a designated Visa Treasury account managed by Circle. This innovative partnership was indicative of the promising potentials of blockchain technology and stablecoins in minting global payments’ efficiency.
With Solana at its side, Visa not only increases its proficiency to support efficient stablecoin transactions but also solidifies its pioneering stand among prominent payment companies. It must be noted that the high-performance blockchain network of Solana thrusts forward magnificent performance metrics inclusive of an average of 400 transactions per second and 400 millisecond block times.
While constant skepticism arises given the dramatic change, Visa has proven its capabilities, by settling transactions worth millions of US dollars over Ethereum and Solana blockchains.
Transitioning the core operations from the conventional to a blockchain-backed system opens the floor to a transformative phase, painting a picture of the upcoming digital era. As the old adage goes, “it is still early days”, but this shift sends ripples across the globe, leaving one to wonder what the coming dawn holds for the financial sector.
Source: Cryptonews
