Visa Expands Stablecoin Settlements with Aquanow

This move lets banks and payment processors in the region settle transactions using trusted stablecoins like USDC, slashing costs, delays, and paperwork that plague traditional cross-border payments.

Stablecoins are digital dollars pegged 1:1 to real currency, offering the stability of cash with blockchain speed.

Bridging TradFi and Crypto Rails

Aquanow’s infrastructure plugs directly into Visa’s payment network, giving issuers and acquirers a new way to clear deals around the clock, even on weekends. Picture a merchant in Dubai paying a supplier in Kenya: instead of waiting days for bank wires with hefty fees, they settle instantly in USDC via Visa’s system.

Visa piloted this in 2023, and volumes have since hit a $2.5 billion annualized run rate, proving demand for frictionless backend money movement. Godfrey Sullivan, Visa’s head of product for the region, called it a step to modernize payments by ditching slow intermediaries.

This rollout taps into a booming trend where stablecoins handle real-world payouts and settlements. The market topped $300 billion this year, with USDC grabbing 25% share amid clearer U.S. and EU rules. Financial firms crave 24/7 liquidity, especially in emerging markets where cross-border flows exceed trillions annually but face outdated rails.

Aquanow CEO Phil Sham highlighted how pairing Visa’s reach with stablecoin speed brings internet-like transparency to institutions. Recent pilots, like Visa’s fiat-to-stablecoin disbursements for gig workers, show the tech scaling fast.

More About Stablecoins

Euro stablecoins stand out as the only non-USD segment showing growth, with EURC reaching €287 million in market cap amid a stagnant broader stablecoin market. While USD-pegged giants like USDT and USDC dominate over 99% of the $280+ billion total supply, euro variants remain niche at around €395 million overall, boosted by EU MiCA regulations favoring compliant local tokens.

This uptick reflects rising DeFi demand and institutional interest in euro-backed options for cross-border efficiency.