Visa Activates USDC Settlement for US Banks on Solana

Visa officially opened its stablecoin settlement rails to US financial institutions today, enabling partners to settle transactions in USDC over the Solana blockchain. The move marks the first time Visa has deployed its crypto-native treasury operations domestically, following a pilot program that hit a $3.5 billion annualized run rate as of November 30.

The Banking Partners

Cross River Bank and Lead Bank are the first US entities to integrate the system. Instead of waiting for traditional wire transfers that lag over weekends, these institutions can now push liquidity 24/7. Visa’s pivot to on-chain settlement addresses a long-standing friction point in traditional finance: the T+1 (or T+2) settlement lag that traps capital during non-banking hours.

“Financial institutions are looking for faster, programmable settlement options. Visa is delivering a reliable, bank-ready capability that improves treasury efficiency.” — Rubail Birwadker, Global Head of Growth Products at Visa

Solana and the ‘Arc’ Pivot

Visa selected Solana for its initial US rollout, citing the chain’s throughput and settlement speed. Despite the institutional nod, SOL failed to rally on the news, trading down 4.5% at $126 as broader market weakness weighed on the asset.

While Solana handles the immediate volume, Visa is already hedging its infrastructure bets. The payments giant confirmed it has signed on as a design partner for Arc, a new Layer 1 blockchain developed by Circle. Visa intends to operate a validator node on Arc and eventually migrate a portion of its settlement volume to the purpose-built chain once it exits testnet.