Partnership with Aquanow to Facilitate Faster, Cheaper Cross-Border Payments
Visa has announced an expansion of its stablecoin usage for settlement in Central and Eastern Europe, the Middle East, and Africa through a new partnership with crypto infrastructure company Aquanow. The collaboration aims to settle transactions using approved stablecoins such as USDC, reducing costs, operational friction, and settlement times.
The payment giant stated Thursday the move responds to strong demand from banks and payment companies seeking faster, cheaper cross-border payments. The initiative leverages stablecoins to digitize the back-end of money movement and enable 24/7 settlement capabilities.
Godfrey Sullivan, Visa's head of product and solutions for the CEMEA region, explained institutions will benefit from simplified settlement workflows. The system digitizes money movement infrastructure and operates continuously rather than during business hours only.
The partnership aims to reduce dependence on legacy payment rails that require numerous middlemen. Visa positions the move as preparation for evolving financial infrastructure and changing institutional needs.
Evolution of Stablecoins and Institutional Adoption
Digital dollar tokens began as tools for moving funds between cryptocurrency exchanges. They have evolved into onchain equivalents of traditional currency, increasingly used beyond crypto-native applications for institutional payments and settlement.
Deutsche Börse revealed plans this week to incorporate EURAU, a euro-backed token from AllUnity. The exchange operator previously worked with Circle's euro product and Societe Generale's EUR CoinVertible.
Integration will start with Deutsche Börse's custody platform before expanding across other services. The moves reflect growing institutional comfort with blockchain-based settlement infrastructure and tokenization of traditional financial instruments.
Regulatory Landscape and Future Outlook
Regulatory approaches remain in development as authorities determine appropriate oversight frameworks. Erik Thedéen, who chairs the Basel Committee on Banking Supervision, acknowledged current risk weightings for crypto exposures may need revision from the existing 1,250% standard.
Sarah Breeden from the Bank of England expects UK rules to develop in parallel with U.S. regulation. Her comments suggest major financial centers will coordinate approaches as digital tokens become more central to payment and settlement systems.