Recently, Visa has been promoting the use of USDC on the Solana blockchain for payment settlements among banks in the United States. This may seem low-key, but its impact is significant. Let’s delve into the underlying logic.

First, it’s important to clarify a common misconception—this does not mean end-users are using USDC for consumer transactions. Essentially, it’s about using USDC for backend settlement between banks within the Visa payment system. It sounds like a technical detail, but it opens a door for large-scale blockchain integration into traditional finance, which is the real significance.

Looking ahead, Visa has actually been experimenting with USDC settlement since 2021. After 2023, they began pilot programs in Latin America, Europe, and Asia-Pacific, with annual settlement volumes reaching around $3.5 billion. Now, entering the US market marks a major milestone, signifying that stablecoins are moving from small-scale pilots to mainstream applications.

Why is this so impactful? It’s mainly because of the tangible advantages of stablecoins in settlement processes: traditional bank settlements are limited by business days and rely on antiquated systems like wire transfers—slow and costly. Using USDC on Solana? Near-instant transfers, 24/7 operation, significantly lower costs, and high programmability. For banks, this means improved liquidity management and reduced operational friction—real financial benefits.

From a token perspective, this endorsement boosts confidence in both USDC and Solana. USDC, as the most compliant stablecoin—fully backed by USD reserves and 1:1 pegged—being recognized by Visa further cements its position in institutional-level payments. In the long run, this will accelerate adoption by institutional investors and payment participants, likely increasing USDC’s circulation and market share.

However, it’s not all smooth sailing; there are still many variables to watch.