Visa’s Embrace of Blockchain Technology Updates the Worldwide Payment System
- Visa partners with Aquanow to expand stablecoin settlements in CEMEA, enabling faster cross-border payments via USDC and reducing operational costs. - The initiative scales to $2.5B monthly volume after a 2023 pilot, modernizing payment infrastructure by eliminating intermediaries and weekend delays. - Aquanow's institutional-grade crypto expertise supports Visa's digital asset ambitions, aligning with broader industry trends toward blockchain adoption. - While competitors like Mastercard advance stablec
Visa Expands Stablecoin Settlement Across CEMEA with Aquanow Partnership
Visa has broadened its stablecoin settlement services throughout Central and Eastern Europe, the Middle East, and Africa (CEMEA) by teaming up with Aquanow, a leading digital asset platform. This collaboration marks a pivotal advancement in merging blockchain technology with conventional financial systems.
Through this partnership, financial institutions using Visa’s network can now settle transactions with approved stablecoins like USDC. This approach streamlines the settlement process, cutting down on costs, reducing friction, and accelerating transaction times compared to traditional banking methods. The initiative responds to the increasing demand for quicker and more accessible cross-border payments, especially in regions where legacy banking infrastructure may be less efficient or accessible.
Building on Visa’s 2023 pilot, which first enabled stablecoin settlements for clients, the program has rapidly grown to handle an annualized volume of $2.5 billion. This growth highlights the transformative potential of stablecoins in modernizing global payment systems. Godfrey Sullivan, Visa’s Head of Product and Solutions for CEMEA, noted that integrating Aquanow’s technology upgrades the foundational payment infrastructure, minimizes the need for intermediaries, and positions institutions for the evolving digital finance landscape. The system’s ability to process settlements every day of the year also resolves issues like delays during weekends and holidays that are common with traditional banks.
Aquanow, which handles billions in crypto transactions each month, plays a crucial role in supporting Visa’s expansion into digital assets. The company’s expertise in liquidity management and institutional services makes it a key partner for Visa’s ambitions in the sector. Aquanow CEO Phil Sham emphasized that this partnership opens up new possibilities for institutions to benefit from stablecoin technology, bringing internet-level speed and transparency to financial settlements. The collaboration also supports Aquanow’s ongoing growth in the CEMEA region, where it has previously worked with partners like Zodia Custody, backed by Standard Chartered.
Industry Trends and Competitive Landscape
The move toward stablecoin-based settlements reflects a wider shift in the financial industry, as more institutions turn to blockchain solutions to enhance efficiency. Other major players, including Mastercard and American Express, are also developing their own stablecoin initiatives—Mastercard with tools for USDG transactions and AmEx exploring crypto-linked rewards. Visa’s early adoption and rapid scaling, however, have positioned it at the forefront of this transition. By integrating digital assets into its global network, Visa stands to attract neobanks, fintech firms, and traditional banks seeking more affordable and efficient cross-border payment options.
Despite the clear advantages of stablecoins—such as reduced fees and faster settlements—challenges like regulatory uncertainty and market fluctuations persist. Nevertheless, as organizations like Deutsche Börse consider stablecoin solutions for euro-based tokens, the role of this technology in institutional finance is set to expand. Visa’s alliance with Aquanow not only strengthens its competitive position but also supports its vision of a seamlessly connected global payments ecosystem.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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