CMC News

#Visa Cuts Cross-Border Payment Costs With #Stablecoins

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 said 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 that the integration will allow institutions in the region to experience faster and simpler settlements. The partnership represents another step in modernizing the back-end rails of payments, reducing reliance on traditional systems with multiple intermediaries, and preparing institutions for the future of money movement.

Stablecoins originated as a convenient method for #cryptocurrency users to transfer money between crypto exchanges, but have since assumed the role of the U.S. dollar in the on-chain economy. These digital assets are increasingly being deployed outside the crypto-native world, including for institutional settlement and #payments.