Visa USDC on Solana: The Blockchain Path Transforming the U.S. Banking Settlement System

Background: Financial Settlement Continues to Innovate

Traditional banking systems rely heavily on centralized clearing structures for settlement, which often face issues such as long clearing cycles and high costs for cross-border operations. In recent years, with the maturity of stablecoins and blockchain technology, institutional-level payment settlement innovations have been continuously promoted. Visa has recently officially entered this space, forming new settlement solutions.

What is the USDC stablecoin and its role

USDC (USD Coin) is a stablecoin issued by Circle, pegged to the US dollar at a 1:1 ratio. It exists as a digital asset on the Blockchain and can be used for various purposes such as cross-chain transfers, Settlement, and financing. The characteristics of stablecoins include stable value, auditability, and the advantage of fast transfers, making it an ideal vehicle for institutional-level Settlement.

Overview of Visa’s Solana USDC Settlement Plan

Visa officially announced in December 2025 the launch of USDC settlement services in the U.S. market, connecting banks with the Visa network through the Solana blockchain. The first participating institutions include Cross River Bank and Lead Bank, which have already begun using USDC for settlement with Visa. Visa plans to further expand to include more banks in 2026.

The entire project aims to achieve faster and more continuous fund settlement through Blockchain, while keeping the consumer experience unchanged when using credit cards.

Institutional Participation and Real Progress

As of now, the first batch of participating banks has already begun USDC settlement experiments on Solana, transitioning from traditional settlement models to blockchain models. This experiment not only tests technical feasibility but also observes the improvement in risk control and liquidity efficiency in actual institutional operations.

In addition, Visa has already launched similar pilots globally and accumulated experience in multiple markets, and this expansion in the United States is a significant step towards more standardized and scaled operations.

The technical advantages of the Solana Blockchain

The Solana blockchain is known for its high TPS (transactions per second) and low fees, providing a significant advantage in large-scale institutional settlement scenarios. Compared to certain public chains, Solana’s fast confirmation times and low latency characteristics make it more suitable for handling high-frequency settlement tasks, facilitating large-scale movement of funds in bank back offices.

The impact on the operational costs and efficiency of banks

By settling with USDC, banks can:

• Reduce settlement costs: potentially lower compared to traditional methods such as cross-border wire transfers.
• Improve capital efficiency: 7×24 hours of settlement reduces the clearing gap during weekends and holidays.
• Enhance liquidity: transfer funds anytime, optimizing balance sheet management.

These advantages are expected to enhance the internal operational efficiency of banks and drive the acceptance of Blockchain technology within the banking system.

Comparison with traditional systems

Traditional settlement systems like ACH and Fedwire are often constrained by business days and operating hours. In contrast, the USDC settlement model operates around the clock through Blockchain, enabling more timely movement of funds. Moreover, the transparent and auditable nature of the Blockchain ledger aids in risk monitoring and compliance review.

Potential Challenges and Market Analysis

Despite the obvious highlights of innovation, there are still several challenges:

• Technical Security: On-chain settlement must ensure protection against attacks and failure risks.
• Regulatory Uncertainty: The regulatory framework related to stablecoins is still evolving.
• Market adoption speed: Some traditional banks are cautious about new technologies.

These factors will affect the pace and scale of the promotion of this model in the future.

Conclusion

Visa’s settlement service launched with Solana and USDC represents an important step towards the digitalization and blockchainization of payment settlement infrastructure. As more institutions participate and regulations become clearer, stablecoin settlements may become a crucial component of future operations for banks and payment networks, having a profound impact on global financial infrastructure.