Accelerating Cross-Border Payments with Stablecoins
Visa is broadening its utilization of stablecoins for settlement purposes across the Central and Eastern Europe, Middle East, and Africa (CEMEA) region. This expansion is facilitated by a new strategic partnership with Aquanow, a firm specializing in crypto infrastructure.
In a joint announcement, Visa revealed its collaboration with Aquanow to enable transactions to be settled using approved stablecoins, such as USDC. This initiative is designed to significantly reduce costs, streamline operational processes, and shorten settlement durations. The company highlighted that this strategic move is a direct response to the substantial demand from banks and payment providers seeking more efficient and cost-effective cross-border payment solutions.
The primary objective of this partnership is to leverage stablecoins to modernize the back-end infrastructure for money movement and to facilitate round-the-clock settlement capabilities. Godfrey Sullivan, Visa’s head of product and solutions for the CEMEA region, emphasized that this integration will empower institutions within the region to experience faster and more simplified settlement processes.
Sullivan further stated, "Our partnership with Aquanow is another key step in modernizing the backend rails of payments, reducing reliance on traditional systems with multiple intermediaries, and preparing institutions for the future of money movement."
The Growing Prominence of Stablecoins
Initially developed as a convenient method for cryptocurrency users to transfer funds between exchanges, stablecoins have evolved to serve as a de facto digital dollar within the onchain economy. Their utility is now extending beyond the crypto-native space, finding applications in institutional settlement and broader payment systems.
This development follows recent news from Deutsche Börse, a market infrastructure provider, which announced its plans to integrate the EURAU euro-pegged stablecoin, issued by AllUnity. This integration is set to enhance the exchange group's digital-asset strategy, building upon its previous collaborations with Circle’s Euro Coin (EURC) and Societe Generale-Forge’s EUR CoinVertible (EURCV). Deutsche Börse intends to introduce EURAU into its institutional custody service and has indicated a future plan to extend the euro stablecoin's integration across its entire service portfolio.
Regulatory Landscape and Future Outlook
The classification and supervision of stablecoin exposure within the banking system remain subjects of ongoing debate among regulators. Erik Thedéen, governor of the Swedish central bank and chair of the Basel Committee on Banking Supervision, recently acknowledged that the committee might need to adopt a "different approach" concerning the current 1,250% risk weighting applied to crypto exposures.
In parallel, Sarah Breeden, Deputy Governor of the Bank of England, expressed expectations that the UK will align with the United States in its approach to stablecoin regulation. This suggests a potential for major jurisdictions to move in concert as stablecoins become increasingly integrated into payment and settlement infrastructures.