Visa partners with U.S. banks to enable USDC settlement! A seven-day window revolutionizes traditional payments

Visa announces that US banks issuing cards and acquiring institutions can now settle VisaNet debts using Circle’s USDC stablecoin, marking the first time this functionality has been implemented in the United States. Cross River Bank and Lead Bank become the first US banks to settle with Visa via USDC on the Solana blockchain. This service extends the traditional five-business-day settlement cycle to a seven-day window.

Why Traditional Payment Giants Are Embracing Stablecoin Settlement

(Source: X)

This breakthrough integration by Visa is no coincidence but builds on successful overseas pilot experiences. By the end of November 2025, Visa’s stablecoin settlement pilot has achieved an annualized run rate of over $3.5 billion per month. This figure demonstrates the genuine demand among institutions for stablecoin settlement and provides a confidence foundation for Visa to roll out the service nationwide in the US.

From a strategic perspective, Visa’s integration of USDC settlement aims to address multiple pain points in traditional payment infrastructure. Conventional bank settlements are limited by business days, with funds unable to flow during weekends and holidays, posing a significant obstacle for fintech clients operating around the clock. Additionally, traditional settlement relies on complex correspondent banking networks, increasing delays and costs.

USDC, as a fully reserved stablecoin, offers a unique value proposition. Each USDC token is backed by an equivalent amount of USD or USD reserves and exists on a public blockchain, enabling real-time programmable transfers. This characteristic makes USDC an ideal digital settlement tool, maintaining the stability of the dollar while leveraging blockchain speed and transparency advantages.

Circle co-founder and CEO Jeremy Allaire describes this as “a significant step for the mainstream adoption of digital dollars.” He notes that as USDC flows from users to Visa and ultimately to merchants, it signals a transition of financial infrastructure toward being natively network-based. This transformation not only changes the way funds move but also builds a bridge between traditional finance and blockchain finance.

Circle’s Stock Reaction Reveals Market Confidence

After Visa announced that US banks could use USDC for settlement, Circle Internet Group (NYSE: CRCL) stock immediately rose. This market reaction is not hype but reflects investor recognition of the commercialization pathway for stablecoins. As the issuer of USDC, Circle directly benefits from increased usage, and Visa’s endorsement significantly enhances USDC’s credibility in institutional applications.

The stock rise is backed by tangible business logic. Every USDC transaction within the Visa network allows Circle to profit from interest generated by reserve assets. As more US banks join this settlement network, USDC’s circulation will grow substantially, directly translating into revenue growth for Circle. The market’s optimistic outlook on this future is reflected in the stock price.

More importantly, Visa’s integration provides USDC with a “trust endorsement.” US banks are highly cautious when choosing stablecoin partners, and Visa’s selection of USDC over other stablecoins (such as USDT or BUSD) demonstrates Circle’s advantages in compliance, transparency, and reserve management. This endorsement effect will attract more financial institutions to adopt USDC, creating network effects.

The Revolutionary Significance of the Seven-Day Settlement Window

Traditional Visa settlement follows a five-business-day cycle, meaning transactions on Friday may not settle until the following Wednesday. For fintech companies requiring rapid capital turnover, this delay causes liquidity pressures. The seven-day window enabled by USDC settlement eliminates weekend and holiday gaps, making fund flows more continuous and predictable.

Lead Bank CEO Jackie Reses emphasizes the practical value of this change: “This capability improves the speed and accuracy of fund operations and helps us provide modern financial services to the communities we serve.” As a community bank focused on technology, Lead Bank’s fintech clients demand real-time funds, and the seven-day settlement window directly enhances their competitiveness.

Gilles Gade, founder and CEO of Cross River Bank, views this breakthrough from an interoperability perspective: “A unified platform that natively supports stablecoins and traditional payment networks is the foundation for future value to flow globally.” This interoperability means banks no longer need to choose between traditional systems and blockchain systems but can flexibly use the most suitable settlement method based on different scenarios.

Three Major Breakthroughs from the Seven-Day Settlement

Modernized Liquidity Management: Banks can access funds during weekends and holidays, supporting 24/7 fintech operations

Reduced Capital Costs: Faster settlement cycles decrease capital lock-up time, improving capital efficiency

Automation and API-Driven: Blockchain-native USDC supports programmable settlement, reducing manual intervention

Back-End Revolution Without Consumer Perception

It is important to emphasize that Visa’s USDC settlement will not alter the consumer payment experience. When you swipe your Visa card at a store, you still see the USD amount, and the payment process remains exactly the same. The USDC settlement occurs behind the scenes in the payment system, affecting how banks and Visa clear funds.

This “invisible” design is a key part of Visa’s strategy. Consumers do not need to understand blockchain or stablecoins, nor do they need to hold crypto wallets. All technical complexities are hidden beneath the surface, allowing users to continue enjoying familiar payment experiences, while banks gain faster and more flexible settlement capabilities behind the scenes.

Visa plans to expand USDC settlement services to more US partners by 2026, signaling that stablecoins will play an increasingly important role in the US payment infrastructure.