Visa has announced a significant expansion of its settlement platform, now supporting three new stablecoins and two additional blockchains. This move aims to enhance international payment processes.
Visa's Platform Expansion
On July 31, Visa announced the integration of PayPal's PYUSD, Circle's USDC, and the euro-backed EURC into its settlement platform. The company is also adding support for the Stellar and Avalanche blockchains to the existing Ethereum and Solana networks. Transactions can now take between 4 to 8 hours, compared to 3-5 business days for traditional transfers.
Regulatory Environment for Digital Assets
Recent policy initiatives have created a more favorable environment for stablecoin integration in corporate finance. A White House report emphasizes that failing to adopt stablecoins could threaten the US dollar's position in the global economy. Additionally, the recently signed GENIUS Act has increased institutional interest in dollar-pegged cryptocurrencies and reduced regulatory uncertainty.
Advantages of Stablecoin Use in Corporate Finance
The integration of stablecoins in corporate treasury functions offers significant advantages. For instance, transferring $10 to $30 million via traditional banking channels typically requires 3 to 5 business days, while stablecoin transactions can complete in 4 to 8 hours. This is crucial for companies operating internationally.
Visa's expansion of its settlement platform to include new stablecoins and blockchains reflects changing approaches to international payments, highlighting the growing significance and trust in digital assets.
