Visa Tests USDC Large-Value Payment Settlement System on Ethereum

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In a significant move signaling deeper integration between traditional finance and blockchain technology, Visa is actively testing a new system for settling large-value payments using USDC on the Ethereum network. This development, revealed by Cuy Sheffield, Head of Crypto at Visa, during his speech at StarkWare Sessions 2023, underscores the payment giant’s strategic push into the digital asset space.

The pilot project focuses on enabling Visa to accept and process settlement payments in USDC—Circle’s regulated stablecoin—originating from the Ethereum blockchain. Unlike retail transactions, these are high-value settlements, potentially paving the way for faster, more efficient cross-border fund transfers and institutional-level clearing.

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Bridging Traditional Finance and Digital Assets

Sheffield emphasized that the ability to move seamlessly between digital tokenized currencies and traditional fiat is a core capability Visa aims to build. “This is one of the areas where we want to develop muscle memory,” he stated. “Just as we can switch between dollars and euros in cross-border transactions, we should be able to switch between tokenized digital dollars and traditional dollars.”

This vision aligns with broader industry trends where financial institutions are exploring tokenization of assets to unlock liquidity, reduce settlement times, and minimize counterparty risk. By leveraging public blockchains like Ethereum, Visa is experimenting with real-time settlement mechanisms that could one day replace or complement legacy systems such as SWIFT.

Currently, most international payments still rely on centralized messaging protocols like SWIFT, which often result in delays due to multiple intermediaries and time-zone dependencies. In contrast, blockchain-based settlements offer near-instant finality, transparency, and reduced operational overhead—key advantages for a global payments leader like Visa.

Strategic Investment in the Crypto Ecosystem

Visa’s exploration of USDC on Ethereum isn’t an isolated experiment. It’s part of a long-term strategy to embed crypto capabilities across its network. As early as fiscal Q1 2022, the company reported facilitating $2.5 billion in transactions through cards linked to cryptocurrency platforms—a clear signal of growing consumer and merchant adoption.

Beyond transaction processing, Visa launched a dedicated cryptocurrency consulting practice in 2022. This service offers guidance to financial institutions and businesses looking to integrate crypto features—from launching crypto-enabled cards to exploring non-fungible tokens (NFTs) for customer engagement and loyalty programs.

This dual approach—building internal expertise while enabling partners—positions Visa as both an innovator and enabler in the evolving digital economy.

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Why USDC and Why Ethereum?

The choice of USDC (USD Coin) as the settlement asset is strategic. As a regulated, dollar-backed stablecoin issued by Circle, USDC offers price stability, regulatory clarity, and broad interoperability across blockchains. Its compliance-first design makes it a suitable candidate for institutional use cases.

Meanwhile, Ethereum remains the dominant platform for decentralized finance (DeFi) and tokenized asset activity. Its robust smart contract functionality, large developer ecosystem, and widespread adoption make it an ideal environment for piloting innovative payment solutions.

By anchoring its test on Ethereum and using USDC, Visa ensures compatibility with existing DeFi protocols, wallets, and custodial services—facilitating smoother integration with both traditional banking systems and emerging Web3 infrastructures.

Implications for the Future of Payments

If successful, this initiative could redefine how large-scale financial settlements occur. Potential benefits include:

While the current tests focus on backend settlement rather than consumer-facing transactions, they lay the groundwork for future applications such as instant cross-border remittances, automated B2B invoicing, and programmable corporate treasury operations.

Moreover, Visa’s involvement lends credibility to stablecoins and public blockchains as viable financial infrastructure—potentially accelerating regulatory acceptance and institutional adoption worldwide.

FAQ: Understanding Visa’s Move Into Blockchain Settlements

Q: What is USDC?
A: USDC (USD Coin) is a regulated stablecoin pegged 1:1 to the U.S. dollar. It operates across multiple blockchains and is issued by Circle in partnership with regulated financial institutions.

Q: Is Visa replacing SWIFT with blockchain?
A: Not yet. Visa is currently testing blockchain-based settlements as a complement—not a replacement—to existing systems like SWIFT. The goal is to explore faster, more efficient alternatives for specific use cases.

Q: Does this mean I can pay with crypto at merchants using Visa?
A: Not directly. This initiative focuses on B2B settlement, not consumer spending. However, Visa’s crypto-linked cards already allow users to spend digital assets at millions of merchants via conversion to fiat.

Q: Is USDC safe for large-scale financial use?
A: Yes, USDC is subject to regular audits, holds full reserves, and complies with financial regulations—making it one of the most trusted stablecoins for institutional applications.

Q: Could other blockchains be used in the future?
A: While Ethereum is the current testbed, Visa has previously experimented with other chains like Solana and Polygon. Interoperability across networks will likely remain a priority.

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Conclusion: A Step Toward Tokenized Finance

Visa’s exploration of USDC settlements on Ethereum marks a pivotal moment in the convergence of traditional finance and decentralized technology. By applying its global scale and payment expertise to blockchain innovation, Visa is helping shape a future where digital dollars flow as seamlessly as data.

As experiments evolve into production systems, we may soon witness a hybrid financial ecosystem where tokenized assets coexist with fiat currencies—enabled by infrastructure giants willing to lead the transition.

For developers, financial institutions, and regulators alike, this shift demands collaboration, clarity, and forward-thinking policy. One thing is certain: the future of money is being rewritten on-chain—and Visa wants to be part of the script.

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