Visa has begun settling stablecoin transactions on Ethereum using USDC, processing over USD 3.5 billion in annualised volume.
Following the announcement, Visa, the US-based payments network, has integrated blockchain settlement capabilities through Ethereum, marking a shift in how traditional financial infrastructure approaches digital asset transactions. The system, operational since December 2024, uses Circle's USDC stablecoin and enables institutional clients to settle payments directly on-chain.
The integration bypasses conventional banking rails, allowing transactions to occur continuously rather than within traditional banking hours. According to Visa's on-chain analytics, the system has processed more than USD 3.5 billion in annualised transaction volume since deployment.
Settlement infrastructure and operational changes
According to the official press release, through the process of routing payments through Ethereum's public blockchain, Visa reduces settlement timeframes from multiple days to minutes. Transactions are recorded on the distributed ledger, creating an auditable trail that remains publicly accessible. This approach removes intermediary steps typically required in cross-border and institutional payment flows.
The system provides institutional clients with the ability to initiate and complete transactions outside standard banking schedules. Operational costs decrease as the number of intermediaries involved in payment processing is reduced. The blockchain-based architecture also introduces transparency mechanisms that support compliance and reconciliation processes.
Financial institutions using the platform are expected to gain access to a settlement method that operates independently of correspondent banking networks. This infrastructure change addresses longstanding inefficiencies in cross-border payment systems, where delays and opacity have historically created friction.
Implications for payment infrastructure
Visa's deployment of Ethereum-based settlement represents a measurable application of blockchain technology within regulated financial services. The integration demonstrates that distributed ledger systems can support institutional-grade payment volumes while also maintaining operational reliability.
The use of a public blockchain for payment settlement by a major network operator may establish a reference point for other financial institutions evaluating similar infrastructure upgrades. As blockchain-based settlement systems demonstrate consistent performance at scale, adoption across the payments industry could accelerate as well.
The move also reflects broader institutional interest in stablecoins as a bridge between traditional currency systems and blockchain networks. By enabling USDC settlements, Visa positions Ethereum as a viable payment rail alongside established networks.
Cross-border payment providers and financial institutions may assess whether blockchain settlement offers competitive advantages over existing correspondent banking arrangements. If adoption expands, the model could influence the manner in which international transactions are structured and executed across the financial sector.
